8.4 Arts and Humanities Programs
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
04/06/2009
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO.
Page 1
Arts and Humanities
4
BY:
BY: Connie Bonty
ITEM: Resolution No. 09-6615
A resolution authorizing the Mayor to execute an agreement between the City of Salina and the Salina
Arts and Humanities Foundation regarding responsibilities relating to Arts and Humanities Programming.
BACKGROUND:
The Salina Arts and Humanities Commission (A&H Commission), first formed by City Ordinance in
1966, consists of 12 members, appointed by the Mayor with the approval of the Board of City
Commissioners. As amended and codified in Chapter 2, Article VII of the Salina City code, the A&H
Commission is charged with (in somewhat abbreviated form):
1. Hold public meetings and keep a public written record of their proceedings
2. To review the financial needs of the program, and submit a proposed budget therefore to the
City Manager
3. To make application for and accept grants, gifts and donations
4. To initiate, sponsors or conduct, alone or in cooperation with other public or private agencies,
public programs to further the development and public awareness of, and interest in the fine and
performing arts and the humanities,
5. To advise and assist the city in connection with other artistic and cultural activities as may be
referred to it by the city.
6. To utilize the services of City staff who may be made available to it.
7. To serve as a clearinghouse for scheduling exhibits and other cultural events that occur in the
community
8. To generally stimulate, facilitate, coordinate, and cooperate with existing arts organizations.
In 1989, it was determined that it was desirable to establish a private, not-for-profit organization, to be
styled the "Salina Arts and Humanities Foundation" (SAHF). The impetus for establish a separate
entity was based on several factors including:
1. Establishing a donor comfort level that funds raised from the private sector for Arts and
Humanities purposes would be used for those purposes.
2. Being able to maintain donor anonymity through a private foundation, when and if the donor
prefers to remain anonymous.
3. Being able to meet performer's requirements regarding timing of payment and contractual
disclosure limitations, specifically at River Festival.
The City of Salina endorsed the formation of such a foundation via Resolution 89-4082. The
Resolution cites the purposes of the Foundation as:
"To initiate, sponsor or conduct, alone or in cooperation with other public or private agencies, public
and private programs to further the development and public awareness of, and interest in, the fine and
performing arts and the humanities; to advise and assist the City of Salina, Kansas, and it's agencies
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
04/06/2009
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO. 4
Page 2 BY: Connie Bonfy
and instrumentalities in connection with artistic and cultural activities, to stimulate, facilitate, coordinate
and cooperate with existing organizations, both public and private, and individuals for the development
of the arts and historical tradition of the City of Salina, Kansas; and to initiate programs and proposals
of encouragement for the promotion and development of the arts, culture, heritage, beauty and
tradition of the City of Salina, Kansas."
Arts and Humanities
BY:
The bylaws of the Salina Arts and Humanities Foundation provided that membership in the SAHF
would be concomitant with the appointed membership of the Salina Arts and Humanities Commission.
Clearly, there was a lot of overlap between the two organizations, with respect to both purpose and
membership. In practice, the names "Arts and Humanities Commission" and "Arts and Humanities
Foundation" are sometimes used interchangeably. While this arrangement insured unanimity of
purpose, it also generated ambiguity with respect to the roles and responsibilities of the various
parties.
As a practical matter, this ambiguity gave rise to a mode of financing and operation in which the City
of Salina budget provided for staffing costs, as well as an annual lump sum contribution to the
"Foundation". The Foundation would raise private resources through donations, festival button Sales,
vendor charges and fees, etc. The Foundation then combined those public and private resources,
and incurred and paid all non-staff operating expenses associated with the various art and cultural
programs, including the River Festival. City staff routinely acts on behalf of the Foundation in many
respects, with no formal definition of the role they play in that capacity (up to and including signing of
Foundation contracts). In short, the Arts and Humanities Foundation has been substantially involved
in Arts and Humanities programming, well beyond a fiduciary role.
With regard to meetings, the A&H Commission would meet to transact Commission business, adjourn
as the Commission, and immediately convene as the Arts and Humanities Foundation to address
Foundation business.
In the recent past, this mode of operation has generated several issues revolving around the following
points:
1. Public Records and Open Meetings requirements. It is the opinion of City legal counsel
that, due to the overlap in membership between the Commission and the Foundation, and
the lack of definition in the roles that staff play, that the Foundation is subject to statutory
requirements regarding public meetings and open records. This makes it difficult, if not
impossible to protect the anonymity of donors or comply with non-disclosure requirements
in performance contracts.
2. Risk Management. The question of who provided coverage for personal and property
damages that may occur at Foundation provided events is difficult to address.
3. Purchasing Authority. The legal authority of City employees to purchase goods and
services, sign contracts, and the like on behalf of the foundation is unclear. Are the
purchasing practices of the Foundation subject to the City purchasing policy?
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
04/06/2009
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO. 4
Page 3 BY: Connie Bonfy
As a result of these issues, the Salina Arts and Humanities Foundation Board and City staff have
spent considerable time in developing a new approach that will better achieve our goals and more
appropriately define the roles and responsibilities of the various parties involved.
Arts and Humanities
BY:
The new approach involves two components: a bylaws change for the Foundation which changes the
way Directors are appointed, and the establishment of an agreement with the City of Salina
establishing responsibilities of the two parties.
Bvlaws chanqe:
While there are multiple changes to the bylaws, only two of those have a direct impact on the
relationship between the City of Salina and the Salina Arts and Humanities Foundation. The first
change is a provision with regard to qualifications specifying that Foundation Directors cannot be
either current employees of the City or current Commissioners of the Arts and Humanities
Commission. The second change is that the new Directors are elected by the sitting Board of
Directors, as is the case in many private foundations. These changes effectively sever the direct link
between the Arts and Humanities Commission (appointed by the Mayor), and the Arts and Humanities
Foundation.
No City Commission action is required to implement the bylaws change-that has already been
approved by the Foundation Board of Directors.
The City - Foundation Aqreement:
The agreement defines respective roles and expectations of the parties.
Under the agreement, the City of Salina, through the Arts and Humanities Department and with the
advice of the Salina Arts and Humanities Commission, will be responsible for program operations.
This will include developing, budgeting, administering, and accounting for all programmatic aspects of
the Arts and Humanities program. The City Finance Department will establish two financial
accounting funds to account for the Smoky Hill River Festival, and the General Arts and Humanities
programs.
Revenues for the programs will include a transfer from the City General Fund, in an amount required
to cover salaries and benefits plus normal office and staff support expenses. Other revenues will
include Button sales, market fees, jury fees, food fees, other event tickets, etc. The City will not
receive donations or contributions directly from private donors for the programs. The City may and
likely will request funding from the foundation for those programs that the foundation has elected to
support. Examples would include the Horizons program, Arts in Education, or other programs as
determined appropriate by the Foundation Board.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
04/06/2009
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO. 4
Page 4 BY: Connie Bonfy
The responsibilities of the Salina Arts and Humanities foundation are limited to:
1. Private fundraising
2. Investing Foundation Funds held on Account
3. Entering into private contracts with artists for the Smoky Hill River Festival, the payment
for which shall be made by SAHF
4. Allocating and granting private funds to the City for programs which may be approved
from time to time.
Arts and Humanities
BY:
City staff may provide support to the Foundation that is incidental to their role as City employees. The
Foundation may utilize meeting space at 211 West Iron, as well as maintain their private books of
account at that location, to be kept separately from the City records.
Each party is responsible for their own risk exposures.
Finally, fiduciary assets (investments, checking accounts) currently owned by the Salina Arts and
Humanities Foundation shall remain the property of the Foundation. The art collection currently
owned and catalogued by the foundation will also remain the property of the Foundation. All other
tangible personal property will be transferred to the City to be used in implementing the Arts and
Humanities programs.
FISCAL NOTE:
We anticipate doing a budget amendment in conjunction with our normal budget process in order to
accommodate these changes. The effective date of the agreement is August 1, so the budget for
2009 will be pro-rated for each of the programs.
The City Arts & Humanities Department budget for 2009 is $414,449, all of which is provided by
General Fund resources (largely property and sales tax revenues)
As noted earlier, under the proposed arrangement, two funds will be established, one for general Arts
and Humanities programs, and a separate fund for the Smoky Hill River Festival.
The proposed approximate annualized budget for the Arts and Humanities fund will be as follows:
Revenues:
Transfer from the General Fund:
Portion of Carryover
Transfer from the River Festival:
Arts and Humanities Foundation:
Program Services Charges
Grants and Misc.
Total:
$ 414,449
$ 34,235
$ 57,380 (based on the prior years experience)
$ 41,285
$ 26,950
$ 12,750
$ 587,049
AGENDA SECTION
NO:
ITEM
NO. 4
Page 5
Expenses (by Program):
General Program Support:
Poetry Series
Art a la Carte
Arts in Education
Community Building
Grass Roots Initiative
Calendar and Web
Horizons
Long Term Planning
Total:
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
04/06/2009
TIME
4:00 P.M.
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
Arts and Humanities
BY:
BY: Connie Bonfy
$ 409,749
$ 10,250
$ 4,900
$ 48,550 (two semesters)
$ 9,000
$ 2,000
$ 800
$100,800
$ 1 ,000
$ 587,049
The Smoky Hill River Festival Fund Budget will be approximately:
Revenues:
Foundation Support:
Button Sales:
Four Rivers Market fees
Artist Fees
Food Fees
State Grants
Miscellaneous
Total:
Expenses:
General Administration
Marketing
Technical
Staging
Programming
Transfer to A&H Fund
Total Expenses:
Total for Both Funds:
$ 19,219
$ 159,500
$ 17,000
$ 24,000
$ 49,000
$ 7,120
$ 54,111
$ 329,950
$ 32,630
$ 85,440
$ 47,1 00
$ 32,200
$ 75,200
$ 57,380
$ 329,950
$ 916,999
The budget for the River Festival Fund does not include entertainment, as that is handled by the
Foundation.
These budgets are approximated, because the budgeting process for 2010 has just been initiated, and
it will not be completed until August.
This agreement will have the effect of increasing both City expenditures and revenues by about
$502,550, as well as adding two additional operating funds. It will reduce the transaction volumes for
the Foundation, and will funnel those transactions through the City accounting system.
CITY OF SALINA
REQUEST FOR CITY COMMISSION ACTION
DATE
04/06/2009
TIME
4:00 P.M.
AGENDA SECTION
NO:
8
ORIGINATING DEPARTMENT: APPROVED FOR
AGENDA:
ITEM
NO.
Page 6
Arts and Humanities
4
BY:
BY: Connie Bonfy
CONFORMANCE WITH THE STRATEGIC PLAN:
The Big Ideas-Salina's Cultural Plan 2008-2013 include the following goals:
. Make arts, culture, and heritage offerings welcoming, affordable and accessible to all Salinans;
. Make our community a more beautiful place to live, work, and visit;
. Use the arts, culture, and heritage as an engine to drive economic development, and downtown
& community revitalization;
. Make Salina a model community for cultural sector coordination, unity and support;
. Guide Salina's cultural development with enthusiasm, skill, excitement, and vigor.
The goals will be furthered by the division between foundation and city structure. As a fiduciary board,
the foundation board will be able to focus solely upon its development and to build its funding base
and grow its ability to respond to community need.
COMMISSION ACTION:
1. Approve the agreement. Staff feels that it achieves the desired objectives with respect to
public meetings and open records, while preserving privacy concerns in those cases where it is
required. In addition, purchasing authority and staff and organizational roles are clarified as are
ambiguities regarding risk exposures and insurance coverage required.
2. Take other such action as the City Commission may desire
AGREEMENT BETWEEN THE CITY OF SALINA, KANSAS
and
SALINA ARTS AND HUMANITIES FOUNDATION
regarding
RESPONSIBILITIES RELATING TO ARTS AND HUMANITIES
PROGRAMMING
This Agreement is entered into this _ day of April, 2009, by and between the City of
Salina, Kansas, a Kansas municipality, ("City") and Salina Arts and Humanities Foundation, a
Kansas not-for-profit corporation, ("SAHF").
Recitals
A. The City, upon the recommendation of the Salina Arts and Humanities
Commission ("SAHC") and under the administration of its Arts and Humanities Department,
annually undertakes a vigorous arts and humanities program for the purpose of identification,
exploration, and development of this area's sense of community, heritage and vision through the
use of artistic and cultural resources, including the annual Smoky Hill River Festival (the "Arts
and Humanities Program").
B. The SAHC was established, organized, and empowered by the City in 1966, as
currently set forth in Article VII, Chapter 2 of the Salina Code.
C. The SAHF, organized in 1989 as a Kansas not-for-profit corporation and operated
solely for charitable and educational purposes within the meaning of Section 501(c)(3) of the
Internal Revenue Code, as amended, serves as a "supporting organization" by promoting the use
of private resources in support of the Arts and Humanities Program.
D. The City's Governing Body, the SAHC, and the SAHF Board of Directors desire
to clarify and define their respective roles in developing, funding, and administering the Arts and
Humanities Program.
The parties therefore agree:
1. Responsibilities of City and SAHC. The City (with the benefit of the work of the
SAHC) shall, in relation to the Arts and Humanities Program, be responsible for developing,
budgeting, determining levels of public funding, administering, and financially accounting for all
program aspects of the Arts and Humanities Program, including the creation of a special fund
account known as "The Smoky Hill River Festival Account" for purposes of administering and
financially accounting for the City's programming role in conducting the Smoky Hill River
Festival.
2. Responsibilities of SAHF. SAHF shall, III private support of the Arts and
Humanities Program, be responsible for:
(a). Private fundraising;
(b). Investing SAHF funds held on account;
(c). Entering into private contracts with artists for the Smoky Hill River
Festival, the payment for which shall be made directly by SAHF; and
(d). Allocating and granting private funds to the City.
The City acknowledges that SAHF may utilize the services of the Greater Salina Community
Foundation in fulfilling its responsibilities under this Agreement.
3. Allocation of Assets. The SAHF fiduciary assets shall remain the property of the
SAHF. The current Smoky Hill River Festival art collection shall be the property of the SAHF.
All other tangible personal property utilized in implementing the Arts and Humanities Program
shall be the property of the City.
4. Staff Support. Incidental to their primary staff roles as employees of the City,
Arts and Humanities Department staff shall from time to time be called upon by the City to assist
SAHF directors and other SAHF volunteers in support of the private work of the SAHF;
provided, however, under no circumstances shall any authority of the SAHF or its officers or
directors be delegated to or exercised by a city employee. Any city employee directed to assist
the private work of the SAHF shall at all such times and for all purposes be an employee of the
City and not the SAHF. A city employee shall not serve as a director or officer of the SAHF.
5. Meeting Space. Meeting space and work areas required from time to time for the
private work of the SAHF board of directors and other SAHF volunteers shall be made available
in the offices of the Arts and Humanities Department of the City, currently located at 211 West
Iron Avenue.
6. Insurance. The City and SAHF shall each evaluate its own insurable risks and
determine the insurance coverages it chooses to acquire in its own discretion and at its own
expense.
7. Bookkeeping and Records. The books and records of the SAHF maintained in the
offices of the Department, regardless of format, shall:
(a)
SAHF;
Be owned by SAHF and maintained as the confidential private records of
(b) Relate only to the private actIvItIes of SAHF in fulfilling its
responsibilities outlined in Paragraph 2 above in private support of the Arts and
Humanities Program; and
2
(c) Be stored separately from the books and records of the City and accessed
by city employees only when authorized and acting in the role of supporting the private
work of the SAHF as described in Paragraph 3 above.
Any books or records relating to SAHF funds after such funds have been allocated, granted, and
transferred by the SAHF to the City for City use in administering the Arts and Humanities
Program shall be a public record.
8. Audit. The City and SAHF shall each be responsible for its separate and
independent annual financial audit.
9. Anniversary Date. The Anniversary Date of this agreement shall be January 1st.
10. Term. The implementation date of this Agreement shall be August 1,2009. This
Agreement shall remain in effect until it is either (a) modified by mutual written agreement of
the parties at any time or (b) terminated by either party effective on any Anniversary Date upon
written notice by the terminating party to the City Clerk (on behalf of the City) or the SAHF
board chair (on behalf of SAHF) on or before the preceding June 1st.
11. Non-assignable, Binding Effect. Due to the unique qualifications and circumstances
of the parties, neither the rights nor the responsibilities provided for under this Agreement shall be
assignable by either party in whole or in part. This Agreement shall be binding upon any successor
to either party.
Executed by the duly authorized officers of the parties as of the date first above written.
CITY OF SALINA, KANSAS
By:
John K. Vanier II, Mayor
ATTEST:
By:
Lieu Ann Elsey, CMC, City Clerk
SALINA ARTS AND HUMANITIES
COMMISSION
By:
Peggy DeBey, Board Chair
ATTEST:
By:
Rachel Loersch, Board Secretary
3