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FY2023-26 Memorandum of Understanding - Approving Funding Of The Kodiak Economic Development Corporation (KEDC)MEMORANDUM OF UNDERSTANDING This Memorandum of Understanding ("MOU") is made and entered into the Sixteenth day of September, 2022 ("Effective Date"), by and between the Kodiak Island Borough ("Borough") and Kodiak Economic Development Corporation, an Alaskan nonprofit entity ("Nonprofit") (collectively referred to as the "Parties"). RECITALS WHEREAS, the Borough is fortunate to enjoy the efforts of many benevolent nonprofit organizations that provide services that enrich our lives; and WHEREAS, Kodiak area nonprofit organizations provide services that many of our community members rely upon; and WHEREAS, these organizations provide expanded services that cannot be provided through the ordinary governmental budget; and WHEREAS, these organizations expand the services that can be provided, with limited funds, in the community; and WHEREAS, the viability of these services is fundamental to the quality of life enjoyed In the community. NOW, THEREFORE, the Borough wishes to make a charitable gift in the amount of $10,000 (ten thousand dollars) to Nonprofit for the use and benefit of the citizens of the Kodiak Island Borough for fiscal year 2023, and the Parties agree as follows: AGREEMENT 1. Recitals. The Recitals set forth above are true and correct and are incorporated Into this MOU as though expressly set forth herein. 2. Term. The term of this MOU shall commence on the Effective Date and terminate June 30, 2022. 3. Contingency. The transfer of money from Borough to Nonprofit is contingent upon the Nonprofit providing its 501(c)(3) or 501(c)(4) financial documentation to Borough. 4. Donations in Lieu of Cash. It is understood and agreed to by and between the Parties that some nonprofit organizations may prefer a gift other than a cash donation. The Parties agree to cooperate in good faith to allow other donations in lieu of a cash donation. If such a request is agreed to, a description of the exact type of donation is described below: NIA 5. Non -Discrimination. Nonprofit agrees that it will ensure equal employment opportunity without discrimination or harassment on the basis of race, color, religion, sex, sexual orientation, gender Identity or expression, age, disability, marital status, citizenship, genetic information, or any other characteristic protected by law. Page I of 4 6. Independent Contractors. Nonprofit and its representatives, agents, and/or employees are independent contractors. Nothing in this MOU shall be deemed to constitute a partnership or joint venture between the Borough and Nonprofit, nor constitute any Party to be the agent of the other Party for any purpose. 7. Indemni . Nonprofit shall indemnify, defend and hold the Borough and its elected officials, officers, employees, consultants, agents and contractors harmless from and against any and all actions, claims, damages, liabilities, liens, obligations, demands and judgments (including attorney fees) arising from this MOU. 8. Scope of Work. Nonprofit intends to perform the tasks pursuant to this MOU as described in Attachment A. It is agreed and acknowledged that the Borough's donation is to be used to improve and implement the services stated above intended to be provided by Nonprofit within the Kodiak Island Borough jurisdiction. The funds or in-kind donation are not intended to be used by Nonprofit in any other way (i.e., not for bonuses to executives or similar administrative overhead expenses). Accordingly, the Borough is entitled to know exactly how the donation was used or applied, and Nonprofit shall provide a written report to the Borough Assembly detailing the use of the funds within the Nonprofit entity. The written report shall be submitted no later than June 30"', 2023, to the Borough's representative designated to receive Notices as specified in Part 10 below. 9. Defaults and Remedies. a. Default. Failure by either Party to negotiate in good faith as provided in this MOU shall constitute an event of default hereunder. The non -defaulting Party shall give written notice of a default to the defaulting Party, specifying the nature of the default and the required action to cure the default. If a default remains uncured ten (10) days after receipt by the defaulting Party of such notice, the non -defaulting Party may exercise the remedies set forth below. b. Exclusive Remedies for Default. In the event of an uncured default by a Party, the other Party's sole and exclusive remedy shall be to terminate this MOU and neither Party shall have any further right, remedy or obligation under this MOU ; provided, however, any obligation under a specific provision of this MOU for Nonprofit to indemnify or defend the Borough shall survive such termination. C. No Damages. Neither Party shall have any liability to the other for damages or otherwise for any default, nor shall either Party have any other claims with respect to performance or non-performance by the other Party under this MOU. Each Party specifically waives and releases any such rights or claims they may otherwise have at law or in equity in the event of a default by the other Party, including the right to recover actual, consequential, special or punitive damages from the defaulting Party. 10. Third -Party Beneficiaries. This MOU is intended solely for the benefit of the Parties and shall not be construed to create any rights in any person or entity other than the Parties. 11. Notices. All notices and communications in connection with this MOU shall be in writing and shall be deemed given when delivered by personal service, or three (3) business days after placement in the U.S. Mail, certified, return receipt requested, postage prepaid, and Page Z of 4 addressed to the addresses for Borough and Nonprofit set forth below, or such other addresses as either Party may designate by written notice to the other in accordance with this Section 10. Borough: Kodiak Island Borough Manager's Office 710 Mill Bay Road Kodiak, AK 99615-6398 Tel: (907) 486-9303 Nonprofit: K a o \ A -,C-- w.-Irw\ C E4-t-�,_ 0 T C) 10 Tel:f� 4tf_�_ Llln�r"7 12. Non -Binding. This MOU is non-binding and is entered into as an expression of the Parties' good faith intent to draft, negotiate, and enter into an agreement regarding the charitable gift to Nonprofit. 13. Assignment. The qualifications and identity of Nonprofit are of particular concern to Borough. It is because of those unique qualifications and identity that Borough has entered into this Agreement with Nonprofit. Accordingly, Nonprofit may not assign its right to negotiate with Borough to any other person or entity. Any purported voluntary or involuntary assignment of Nonprofit's negotiation rights without written approval by the Borough shall be null and void. 14. Applicable Law. This MOU shall be governed by and construed in accordance with the laws of the State of Alaska without reference to choice of laws principles. Litigation arising out of or connected with this MOU shall be instituted and maintained in the courts of the Third Judicial District at Kodiak in the State of Alaska, and the Parties consent to jurisdiction over their person and over the subject matter of any litigation in such courts, and consent to service of process issued by such courts. is. Severability. If an provision of this MOU is held by a court of competent jurisdiction to be invalid or unenforceable, the remainder of the MOU shall continue in full force and effect and shall in no way be impaired or invalidated, and the Parties agree to substitute for the invalid or unenforceable provision a valid and enforceable provision that most closely approximates the intent and economic effect of the invalid or unenforceable provision. 16. Entire Agreement. This MOU constitutes the entire agreement between the Parties and supersedes whatever oral or written understanding they may have had prior to the execution of this MOU. This MOU shall not be amended or modified except by a written agreement executed by each of the Parties hereto. 17. Counterparts. This MOU may be executed in one or more counterparts, including electronic pdf or facsimile counterparts, each of which shall, for all purposes, be deemed an original, and all such counterparts, taken together, shall constitute one and the same instrument. Page 3 of 4 18. Ambiquity. The Parties and their counsel have each carefully reviewed this MOU, and the Parties have agreed to each term of the MOU. No ambiguity shall be presumed to be construed against either Party. 19. Waiver. Waiver by either Party of any default, breach or condition precedent shall not be construed as a waiver of any other default, breach or condition precedent or any other right hereunder. 20. Headings. The section headings contained in this MOU are inserted for convenience only and shall not affect in any way the meaning or interpretation of this MOU. 21. Authority. The signatories to this MOU hereby represent and warrant that they are fully authorized to sign this MOU on behalf of the Party that they represent. IN WITNESS WHEREOF, the Parties have executed this Memorandum of Understanding as of the date first set forth above. KODIAK ISLAND BOROUGH David Conrad, Inte-M fanro Manager ATTE T: r � � No . MJavler, MMC, Borogh Clerk _ NONPROFIT: Signed: — Printed Name: L C C_.lL7 Z Title: V 1 C_ T. - C—S I V C- t -J k<69 C— Page 4 of 4