ECA meeting on incorporation proposal

2/22/09

Hartung Hall (informal notes by Deirdre Helfferich)

Present: Kate Billington, Nancy Burnham, Eric Glos, Deirdre Helfferich, Hannah Hill, Hans Mölders, Mike Musick, Monique Musick, Mali Noreen, John David Ragan, Debbie Rimer, Mark Simpson, Lisa Sporleder, Nancy Therrell. Also present were Les ? and Bill Baker of the Lions Club.

A meeting was held to vote on a proposal for incorporation of the Ester library as a separate entity from the Ester Community Association, but it was pointed out at the outset by Mark Simpson that the meeting was, in fact, not a legal official meeting of the ECA, as there had not been a directors' meeting to set the meeting, and so therefore no binding votes could take place. So it was decided to have a discussion on the proposal instead.

A slightly revised overview of the JTEL on its own was prepared and offered to the attendees for review, along with a copy of the proposal.

Pros and cons of the idea of separation were discussed. Pros were:

Relief of liability concerns for the ECA;

Focus on and independence of mission, bylaws, and operation for the library;

Potential increase in options or availability of capital or other grants (direct to the library rather than through the ECA);

Relief of increased paperwork & reporting requirements for the ECA due to larger sums of money coming into the organization.

Cons were:

Possibly unecessary due to feedom for the library committee within ECA bylaws;

Loss to library of grant management track record that the ECA has;

Loss to ECA of library assets (i.e., the land).

The proposal and overview were also discussed. Monique pointed out that the library should have a five-year business plan to help it focus on its operations and for obtaining grants.

It was decided to bring the separation proposal to the full ECA membership at the ECA's spring meeting.

See also JTEL meeting of 1.23.2009 on incorporation.

Proposal to the Ester Community Association for Separation of the Library from the Association

February 22, 2009

The ECA’s library committee proposes that the John Trigg Ester Library (JTEL) become a separate entity from the ECA, to take effect as soon as the library’s appropriate nonprofit incorporation paperwork is completed, submitted, and accepted by the State of Alaska. Funds in the JTEL’s credit union accounts and the library property will remain as assets of the JTEL.

The JTEL will repay the Ester Community Association for the money the ECA land accounts provided to pay for the land on Village Road, intended at the time and in the land purchase contract to be used for the library. The JTEL will also repay the amount of interest that would have accrued to the ECA had the funds been left in the land accounts/Certificates of Deposit (amount to be determined by the ECA treasurer).

The JTEL will make payments to the ECA at a minimum amount of $250 per quarter ($1,000 per year), or more if funds are available, plus interest at an amount deemed mutually acceptable, until the full amount of the debt is repaid. Repayment will begin as of the spring ECA meeting.

The JTEL will hasten to prepare its bylaws and other pertinent and necessary paperwork to obtain 501(c)(3) nonprofit status as soon as reasonably possible.

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