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Regular City Council Meeting Monday, May 6, 2024 Page 12 certifies and then it turns out there is a statement in it that is incorrect or it ends up not being a correct audit. City Attorney Tierney explained as a practical matter, the way the City would handle that, is the City would require Kids in Need Foundation to hire an outside auditor to would go through all of the paperwork and certify that for the City. The Council would look at it but would be more of a rubber stamp of their auditor's work. She did not know what MMB would do if an error was found in what had been approved or what level of scrutiny MMB applies to what is city certified. Councilmember Schroeder indicated she was not sure how many non-profits would want to do this but if the City does this, then what about other non-profits coming to them indicating they did not get the opportunity to even compete for that? She noted that is a concern she has. Mayor Roe explained this is not a competitive situation where a non-profit is not getting this because Kids in Need is getting it. In this case, Kids in Need made the request to the State and the State is considering that request. The issue would be a policy question and if the City wants to do these, how many does the City want to do, is there criteria for making a choice, and is a criteria needed. He thought there would need to be a discussion on that. Mayor Roe stated to help understand the process, first the grant agreement needs to be done with MMB,then there is the lease agreement with Kids in Need Foundation to establish that ownership interest, the ground lease, and the City cannot charge rent on that. It is essentially a paper transaction and then there is the lease back in the management agreement. He was not one hundred percent sure if there is a financial transaction part of that where Kids in Need Foundation would be paying something to the City as a part of that lease and management agreement, other than the management costs or consultant. He asked for clarification on what the financial aspect of that agreement would be. City Attorney Fiorini explained the lease and management agreement is what the State usually calls the Use Agreement. The City cannot charge any fees for its services under that agreement. She indicated the way the State's written requirements are,if looking at the use checklists, for what can be in these contracts. Only operations and maintenance expenses can be charged. She thought the City could charge some sort of separate administrative fee at the beginning to try to cover some of the staff's time. The City needs to make sure the MMB is comfortable with that. She did not know of any other city that does that but thought the City would charge a fee at the beginning rather than an on-going fee. Mayor Roe stated specific to the construction management part of it, he wondered if that would be part of this agreement or is that yet another agreement where those costs would be covered.