MEMORANDUM OF UNDERSTANDING BETWEEN THE ARCHDIOCESE AND THE SAN CARLOS COMMUNITY July 1, 2015 The Archbishop recognizes the vibrant Catholic community that worships at San Carlos Church and Participates in the various ministries and development activities at the school bullding as a blessing to the entire Catholic population of the Archdiocese. The purpose of this Memorandum of Understanding ("Understanding") is to clarify the roles and expectations of the community and the Archdiocese Most Reverend Dennis M. Schnurr, Archbishop of Cincinnati (the “Archdiocese”) and Reverend Andres Gercia hereby state that the following understanding exists from this date between the Archdiocese and the San Carlos community (“San Carlos” Term: The effective date of this Understanding is July 1, 2015. tt will remain in effect until cancelled ty the Archbishop, with @ minimum of 60 days notice to San Carlos. Notwithstanding the foregoing, Iti ‘the intention of the Archbishop to review this Memorandum on en annual basis. ‘The Buildings 1. The church, rectory, and former school on the property in Carthage at or near 115 W. Seymour Avenue, Cincinnati, Ohio, 45246, are the property of the Archdiocese. Nothing contained herein is intended to be a conveyance or alienation of this ownership. 2. San Carlos willbe the primary steward of the properties during the term of this Understanding As such, San Carlos will be responsible for securing, inspecting, and otherwise managing the buildings for safety and to ensure they are being used in a manner consistent with those activities contemplated by this Understanding and any subsequent lease or memorandum with any other party, to include Su Casa, LLC. and/or Catholic Charities of Southwestern Ohio ("Su Casa"). San Carlos shall assign this management responsibility to a paid staff member. 3. San Carlos shall have the exclusive use of the rectory and the church. 4. The rectory shall be used exclusively for the residence of priests serving San Carlos, for parish offices, and for other activities that directly support the administration of San Carlos 5. The church shall be used for Mass and such other activities as are consistent with its dedicated sacramental purpose. 6 The school building shall be for the use of San Carlos, subject to the terms of any memorandum of understanding or lease executed by the Archbishop and any other party, to include Catholic Charities. The Archbishop intends to inform San Carlos before any such document is executed and seek its input, 7. Should San Carlos feel that Su Casa or any other party is acting inconsistent with any memorandum of understanding or lease that involves the school building, San Carlos should first consult with the Chief Finance Officer of the Archdiocese.8. San Carlos shall bear all the costs of operating the buildings, including, but not limited to the following: a. Utilities; Water; Telephone; General maintenance, to include any salary or benefits of a custodian; Landscaping, to include lawn cutting; Snow removal; Taxes and property assessments, if any; and, Trash collection. 8. San Carlos will receive all payments from tenants, including Su Casa. 10. Should San Carlos seek to add other tenants for the school building, its first necessary to obtain the consent in writing of the Archbishop. It is also the intention of the Archbishop to consult with Su Casa in such an event. 11, San Carlos shall not make any major repair or modification to the church or the former school building without the express written approval of the Archdiocese. A major repair or modification shall be any repair or modification having an out-of-pocket cost in excess of $1,000 or which involves any alteration to the structure itself. In the event that San Carlos wishes to make such 3 major repair or modification, San Carlos and the Archdiocese shall negotiate and agree upon how the costs for such major repair or modification shall be borne between them. Nothing herein shall preclude San Carlos from making emergency repairs when necessary to protect the health and safety of the community or to avoid serious damage to the buildings if such repairs are not made immediately. 12. The Archdiocese, at its expense, will maintain liability and hazard insurance relating to the butldings, 13. San Carlos will only use the buildings in a manner consistent with the rules and regulations of the Archdiocese applicable to any parish. (The Finance Office of the Archdiocese will provide Guidance to San Carlos, upon request, if San Carlos has any question whether a particular activity is permissible.) The Debt: 14. San Carlos has incurred a debt to the Archdiocese, As of this date the debt totals approximately $315,000. After receipt of the $80,000 initial payment, no part of the outstanding debt continue to accrue interest, 15. The Archdiocese expects the debt to be repaid. A schedule to service this debt is attached hereto. There is no penalty for prepayment of the debt.1e Pri 16. The Office of Pastoral Services arranges for a resident priest to minister to San Carlos, 17. The Archdiocese shall pay the salary, benefits, and travel expenses that are directly related to ministry within the Archdiocese of the priest until June 30, 2016. From July 1, 2016 to June 30, 2017 the Archdiocese and San Carlos will each pay half of this expense. After June 30, 2017 San Carlos will pay all of this expense. 18. The Archdiocese does not intend to incardinate the priest into the Archdiocese. 19. A retirement contribution in the name of the priest is sent quarterly to the priest’s home diocese or religious order. The Archdiocese will continue to pay 100% of this expense until June 30, 2026. From July 2, 2026 to June 30, 2017 the Archdiocese and San Carlos will each pay half of this expense. After June 30, 2017 San Carlos will pay all of this expense. 20. The resident priest, when acting consistent with the norms of Canon Law, the terms of this Understanding, and any further direction from the Archbishop, has primary authority at San Carlos, ‘Other Personnel: 21. The Archdiocese, at its own expense and not seeking reimbursement, pays the salary and benefits of an office manager for San Carlos. After June 30, 2018 the Archdiocese and San Carlos will each pay half of this expense. After June 30, 2019 San Carlos will pay all of this expense, 22, All personnel, to include volunteers, will be certified consistent with the Decree on Child Protection. 23. San Carlos shall be responsible for paying the salaries and benefits for all other personnel, including a qualified finance director. Com ‘nance: 24. Revenues, to include collections and festival proceeds, shall not be assessed by the Archdiocese. 25. San Carlos shall file quarterly financial statements with the Archdiocese. The financial information must be inputted into the ParishSoft accounting system on a timely basis. 26. San Carlos shall share these statements on at least a quarterly basis with its parish, finance and transition councils. 27. San Carlos will publish annually in its bulletin a statement of revenue and expense as well as a ‘summary of outstanding savings and indebtedness. 28. San Carlos shall comply with the Archdiocese’s rules and regulations for the proper handling of collections and other proceeds received by San Carlos.