MCN Member Advisory: Proposal to reimburse nonprofits for transportation costs during bus strike
-------------------------------------------------------------------------------- TO: Minnesota Council of Nonprofits members FR: Jon Pratt, Executive Director, Sondra Reis, Associate Director DT: Monday, March 15, 2004 RE: MCN Member Advisory: Proposal to reimburse nonprofits for transportation costs during bus strike -------------------------------------------------------------------------------- The Metropolitan Council has proposed short-term grants to nonprofits to provide transportation during the metro area bus strike. Several Minnesota Council of Nonprofits members have directed questions to MCN about legal, insurance, and public opinion issues about this proposal. Clients and members of nonprofit organizations are having serious travel problems as a result of the strike, including low and moderate income residents, immigrants, people with impaired vision, and others that have relied on public transportation. Many individuals and Minnesota charitable organizations are making extraordinary arrangements to help people without access to transportation. While MCN has no formal position on the issues underlying current contract negotiations between the Metropolitan Council and the transit union (Amalgamated Transit Union Local 1005), MCN recommends against applying for funding for this purpose for three reasons: 1. Unresolved issues of liability, insurance coverage, and negative implications for future insurability of organizations. Transportation services are expensive risks to insure, and many Minnesota nonprofit organizations that use vans and buses have experienced serious problems in finding and placing their casualty and liability coverage for existing activities. Taking on additional public transit duties can be outside the scope of current insurance policies, and could put that coverage at risk. [Organizations considering providing transportation with Metropolitan Council funding should request that the Metropolitan Council indemnify their organization and Board of Directors for any claims arising out of their transportation activities as a result of their contract. Any nonprofit should make certain that their organization name is specifically included on the certificate of insurance by the Metropolitan Council's insurance carriers.] 2. Nonprofit fiduciary duties with regard to regulated industries and contractual relationships with public entities. Contractual relationships between organizations and public entities give rise to additional liabilities, especially in heavily regulated industries like transportation. Nonprofit organizations need to undertake careful legal and board review to consider the implications, full costs and liabilities of new contracts with any public entity. Organizations that do not have a current contract with the Metropolitan Council should make certain that all conditions and requirements, as well as effects on current insurance coverage, are thoroughly reviewed by legal counsel and approved by the organization's board of directors. [Boards and staff considering Metropolitan Council grants should understand requirements for drivers, processes for driver recruitment, necessary background checks for drivers, and scope of work. Definition is needed for transportation expectations: Are clients to be transported only for human and social service appointments or to child care, work, medical and other destinations? Route scheduling to maximize efficiency requires careful planning.] 3. Negative effects on public support for charitable organizations. Accepting funds from the parties to the current contract dispute would unwisely insert nonprofit organizations into the middle of the conflict. This is likely to create ill will from the public that nonprofit organizations cannot afford because they rely on charitable contributions from the public. The contract dispute between the Met Council and the Amalgamated Transit Union is a serious public issue, and MCN has urged both sides to seek a settlement acceptable to both the employees and the Metropolitan Council. MCN is convening a nonprofit working group to consult with organizations about how they can assist members of the public during the bus strike, and will be providing additional information via e-mail and at the MCN web site. If you have questions or comments about this matter, or other subjects relevant to nonprofit organizations, please feel free to call Jon Pratt or Sondra Reis at 651-642-1904. ********************************************************************************************************************* Madeline Douglass Kingfield (Mpls) REMINDERS: 1. Think a member has violated the rules? Email the list manager at [EMAIL PROTECTED] before continuing it on the list. 2. Don't feed the troll! Ignore obvious flame-bait. For state and national discussions see: http://e-democracy.org/discuss.html For external forums, see: http://e-democracy.org/mninteract ________________________________ Minneapolis Issues Forum - A City-focused Civic Discussion - Mn E-Democracy Post messages to: mailto:[EMAIL PROTECTED] Subscribe, Un-subscribe, etc. at: http://e-democracy.org/mpls
