Title
Dept./ Agency: Office of the Mayor
Action: (X) Ratifying (X) Authorizing ( ) Amending
Type of Service: Memorandum of Understanding
Purpose: To serve as the Fiscal Sponsor for the City of Newark in regards to the Guaranteed Income Pilot Program.
Entity Name: Community Foundation of New Jersey
Entity Address: Morristown, New Jersey 07960
Contract Period: September 1, 2020 through December 31, 2024 or until the Guaranteed Income Pilot Program is complete, whichever comes first
Contract Basis: ( ) Bid ( ) State Vendor ( ) Prof. Ser. ( ) EUS
( ) Fair & Open ( ) No Reportable Contributions ( ) RFP ( ) RFQ
( ) Private Sale () Grant ( ) Sub-recipient (X ) n/a
Additional Information:
This Memorandum of Understanding (MOU) is related to Legistar File ID #21-0363 and both items shall be introduced together.
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WHEREAS, the Reinvent Stockton Foundation (RSF) and Mayors for Guaranteed Income (MGI), both located at 110 North San Joaquin Street, Stockton, California 95202, established in January 19, 2017 is premised on the principle that everyone needs and should have an income floor through having a Guaranteed Income Program; and
WHEREAS, on December 22, 2020, the Municipal Council adopted 7R7-a, which ratified and authorized the Mayor and/or his designee to accept grant funds in the amount of One Hundred Thousand Dollars and Zero Cents ($100,000.00); and
WHEREAS, RSF notified the City of Newark (the “City”) of an additional award of Five Hundred Thousand Dollars and Zero Cents ($500,000.00) for the Guaranteed Income Pilot Program (the “Program”) for a total grant amount of Six Hundred Thousand Dollars and Zero Cents ($600,000.00); and
WHEREAS, due to this engagement, MGI engaged Community Foundation of New Jersey (“CFNJ”), of Morristown, New Jersey 07960 to be the Fiscal Sponsor for the Program, and provided Six Hundred Thousand Dollars and Zero Cents ($600,000.00) in grant funds, for the City to use as a Third-Party Beneficiary to implement the Program; and
WHEREAS, MGI and CFNJ have entered into an agreement in which CFNJ will operate as the City’s Fiscal Sponsor for a 3% fee of the grant funds and all other funds collected, donated, and raised to support and implement the Program; and
WHEREAS, CFNJ will reimburse the City for all expenses that are related to implementing this Program, including the Program Manager’s salary, implementation and disbursement of ATM cards; and
WHEREAS, the City and CFNJ have agreed to enter into a Memorandum of Understanding to set forth their respective rights and obligations as it relates to CFNJ operating as the City’s Fiscal Sponsor for of the Program.
NOW THEREFORE, BE IT RESOLVED BY THE MUNICIPAL COUNCIL OF THE CITY OF NEWARK, NEW JERSEY, THAT:
1. The Mayor, and/or his designee(s), are hereby authorized to enter into and execute a Memorandum of Understanding (MOU) on behalf of the City of Newark with Community Foundation of New Jersey (CFNJ), of Morristown, New Jersey 07960, which sets forth the respective rights and obligations as it relates to CFNJ operating as the City’s Fiscal Sponsor for the Guaranteed Income Pilot Program.
2. Mayor’s for Guaranteed Income (MGI) is providing CFNJ, with grant funding in the amount of Six Hundred Thousand Dollar and Zero Cents ($600,000.00) for the benefit of the City to implement the Guaranteed Income Pilot Program (the “Program”).
3. CFNJ will operate as the City’s Fiscal Sponsor for a 3% fee of the grant funding, and all other funds collected, donated, and raised to support and implement the Program.
4. CFNJ will reimburse and/or pay the City for: (a) any and all money it has paid in the implementation of the Program; (b) the Program Manager’s salary, and; (c) the implementation and disbursement of ATM cards for Program participants from the grant funds it is administering.
5. The Municipal Council ratifies this MOU from September 1, 2020 to the date of adoption of this authorizing resolution, and the MOU shall remain in force and effect until December 31, 2024 or until the Program is complete, whichever comes first.
6. A copy of the fully executed MOU and all attachments shall be filled in the Office of the City Clerk and it shall be made available for public inspection.
STATEMENT
This resolution ratifies and authorizes the Mayor and/or his designee(s), to enter into and execute a Memorandum of Understanding with Community Foundation of New Jersey, of Morristown, New Jersey 07960, to serve as the City of Newark’s Fiscal Sponsor for the Guaranteed Income Pilot Program. This resolution is ratified from September 1, 2020 to the date of adoption and shall remain in full force and effect until December 31, 2024 or when the Program is complete, whichever comes first.