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HomeMy WebLinkAboutOutside Agency Funding (OAF) Charitable Contributions for FY 2017-18CITY OF PALM DESERT FINANCE DEPARTMENT Staff Report Request: Review and Approve Outside Agency Funding (Charitable Contributions) for Fiscal Year 2017-2018 Submitted By: Janet M. Moore, Director of Finance Date: June 22, 2017 Contents: Draft Minutes - Outside Agency Committee meeting of May 19, 2017 Funding Guidelines — revised May 19, 2017 Recommendation By Minute Motion, that the City Council: 1. Approve the award of charitable contributions in the amount of $130,200 to the agencies listed herein with associated restrictions and conditions; and 2. Pending approval of the FY 2017/2018 City of Palm Desert Financial Plan, authorize the Mayor to execute agreements with agencies awarded funding; and 3. Accept the modifications to the Outside Agency funding guidelines for FY 2017/2018. Strategic Plan Objective Not applicable. Committee Recommendation The Outside Agency / Charitable Contributions Committee met on March 21, 2017 to review the guidelines, applications and recommendations. The Committee requests that the City Council accept their recommendations to provide funding to certain organizations with the associated conditions and restrictions as listed, and to approve minor changes to the funding guidelines for the 2017/2018 fiscal year. Background Applications for the Outside Agency/Charitable Contributions Funding were made available on the City's website in January 2017. Completed applications were received until the deadline of February 24, 2017. A total of $182,900 was requested by various organizations. Staff Report Review and Approval of Outside Agency Funding for FY 2017-2018 June 22, 2017 Page 2of3 The Outside Agency Funding Committee reviewed the applications and guidelines for funding, and recommended the following changes to the guidelines: 1) change the categories to "Examples of Acceptable (Discouraged) Expenditures"; and 2) include reading programs as a reimbursable expense. A copy of the revised guidelines is attached for Council review and approval. Each application received a thorough line -by-line review and discussion to determine items that were eligible for funding. These items will be listed on the Agency's agreement as allowable expenditures that the City desires to fund in the upcoming fiscal year. After careful consideration, the Committee recommends the following awards for matching grants at 50% to Palm Desert's public school organizations, and 100% grants to other non-profit agencies: Matching Grants at 50% for Palm Desert teacher/parentlschool groups 1 James E. Carter Elementary PTO 2 Palm Desert Charter Middle School PTO 3 Palm Desert High School Foundation 4 Ronald Reagan Elementary School 5 Washington Charter Elementary PTO Total PD School Groups: 100% Grants for Non -Profit Organizations 6 ACT for Multiple Sclerosis 5,850 ! 5,000 7 American Cancer Society, CA Division 2,500 ! 2,500 8 Bighorn Institute 5,000 0 9 Children's Discovery Museum of the Desert 5,000 : 5,000 10 Coachella Valley Symphony 2,000 ; 2,000 11 Family YMCA - Jean Benson Childcare 40,000 ; 40,000 12 Family YMCA of the Desert - San Pablo 10,000 , 7,500 13 Friends of the Desert Mountains * 10,000 14 Historical Society of Palm Desert 19,300 15 McCallum Theatre 5,000 16 Neuro Vitality Center 9,700 17 Palm Desert Youth Sports Association ** 5,000 18 Palm Springs Cultural Center 7,200 19 Virginia Waring Int'I Piano Competition 20,000 Total Non-profit Organizations 146,550 3,000 7,500 7,500 6,000 12,350 36,350 3,000 7,500 7,500 3,000 3,000 24,000 19,200 5,000 0 5,000 5,000 10,000 106,200 1 .4$0,200 y $8,000 transferred to Special Programs budget for the Wildflower Festival " Set aside contingent upon confirmation of specific programs per Committee recommendation Specific requirements, conditions and restrictions of the awards, if any, were noted in the attached draft minutes of the meeting. These requirements will be highlighted to the recipient and incorporated into the agreement. The Committee has reviewed and considered all requests for funding and recommends that the City Council approve funding to the above -listed organizations as presented. G:IFinance\Niamh Ortega\Outside Agencies117-181Agendas - Minutes - Staff Reports\SR - OA funding approval 17-18.docx Staff Report Review and Approval of Outside Agency Funding for FY 2017-2018 June 22, 2017 Page 3 of 3 Fiscal Impact Approval of this request will result in the above -listed agencies receiving the designated amounts as a charitable contribution for FY 2017/2018 contingent upon completion of all necessary requirements associated with the Agreement. Funds are included in the FY 2017- 2018 Financial Plan in Account Nos. 1104800-4388000, 1104800-4388100 and 1104800- 4389100. Submitted by: Ja`ra.et4M. Moore, Director of Approval: finance Lauri Aylaian, City Managel— nmo G:1FinancelNiamh OrtegalOutside Agencies117-181Agendas - Minutes - Staff Reports\SR - OA funding approval 17-18.docx MINUTES OUTSIDE AGENCY FUNDING COMMITTEE / COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE Tuesday, March 21, 2017 I. CALL TO ORDER The meeting was called to order at 2:30 p.m. II. ROLL CALL Present: Lauri Aylaian, City Manager Jan Harnik, Mayor Sabby Jonathan, Mayor Pro-Tempore Jill Tremblay, City Attorney Janet Moore, Director of Finance / Committee Chair Also Present: Niamh Ortega, Recording Secretary Ryan Stendell, Director of Community Development III. APPROVAL OF MINUTES Absent: MOTION was made by Member Harnik to approve the Minutes of the November 4, 2016 meeting as submitted. Motion was seconded by Member Jonathan and approved by a 5-0 vote with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. IV. ORAL COMMUNICATION — None. V OLD BUSINESS — None. VI. NEW BUSINESS A. REVIEW OF OUTSIDE AGENCY FUNDING GUIDELINES Chairman Moore stated that she did not have any specific guideline revisions to address and invited the Committee members to discuss any questions, concerns or potential changes they would like to see that would be applicable to the next complete funding cycle. She also pointed out that as the list is reviewed, the Committee should consider whether the agencies are DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 2 of 16 March 21, 2017 being funded through the correct mechanism. There are a number of agencies such as the YMCA and Historical Society of Palm Desert that receive funding through the Outside Agency funding process. They may be better served under a separate agreement that would not be subject to the same level of detailed reporting as other organizations. Member Harnik stated that there is no dispute that these organizations provide a valuable service to the City. She cautioned that there should be a balance where organizations are held sufficiently accountable yet not be required to provide the current overwhelming amount of paperwork. The Committee discussed varying degrees of accountability and reporting, and Chairman Moore offered that all organizations receiving funds are required submit their most recent tax filing of Form 990. She briefly reviewed the process from application through execution of the agreement and the disbursement process for both PTOs and other non-profit agencies. Member Aylaian stated that she read the guidelines and wanted to make sure that other Committee members were comfortable with the guidelines as they were presented. Member Jonathan asked if there was a reason why they were restrictive stating that it seems it would be better to allow agencies to ask for what they wanted and then make the determination of whether or not they should be funded on a case -by -case basis. Member Aylaian also noted that some of the applications for school and parent -teacher organizations (PTOs) indicate that they are looking for funds for programs that are deemed unacceptable according to the guidelines. Member Aylaian asked Recording Secretary Ortega for the background on why and how the guidelines were established since the staff and Council members involved in the creation of the guidelines have since retired. Ms. Ortega informed the Committee that the guidelines initially established were quite broad and included basic and generalized funding restrictions on salaries and capital equipment purchases. Over time and as budgets were reduced, the Committee were more concerned by the submittal of PTO expenses such as pizza parties, carnivals, promotion dances and graduation activities such as trips to Disneyland. Following lengthy discussion a number of years ago, more restrictive guidelines were developed that limited funding to items that would directly enhance the school curriculum in the areas of science, technology, English, arts and mathematics (STEAM). The guidelines are also intended to apply to other agencies as necessary. Member Harnik added that another component that impacted the Committee's direction and decisions is the "headline test". She pointed out any funds awarded are taxpayer dollars, and the City paying for a carnival event or a pizza party looks very different than granting funds to enhance their STEAM program. Member Jonathan stated that he understood, and offered that perhaps the guidelines in the future could be more general. DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 3 of 16 March 21, 2017 Member Harnik responded that the Committee has gradually made the guidelines more specific in response to various issues that arose over the past few years. Member Harnik recommended changing the language slightly from "Acceptable (Unacceptable) Expenditures" to "Examples of Acceptable (Discouraged) Expenditures". Member Aylaian recommended that reading programs and associated materials be included under the acceptable expenses, particularly since the Committee was recommending funding for Ronald Reagan PTO's read-a-thon. The Committee agreed. Member Jonathan asked how agencies were made aware of funding. Ms. Ortega responded that the updated application and guidelines are posted on the City's website each year, and Member Harnik added that any requests for funding received by the City Manager or City Council are typically copied to the Finance department for follow-up. Member Jonathan suggested that once the Committee makes their recommendations and Council approves the funding, a press release should be issued announcing that the City contributed funds to the agencies supporting the local community. B. REGIONAL ACCESS PROJECT (RAP) FUNDING Chairman Moore reported that Regional Access Project (RAP) receives approximately $1.5 million in pass -through funds from the City to assist local non-profit organizations and to aid in capacity -building. She suggested that agencies also be referred to RAP in the future when requesting funds from the City. AWARD OF OUTSIDE AGENCY FUNDING — 50% Matching Grant (Items C. 1— 5 were jointly considered.) Member Aylaian pointed out that there is a section on the application asking agencies to demonstrate how much funding was requested or received from other cities. There are a number of schools in Palm Desert that have children from Rancho Mirage and Indian Wells, yet none of the PTOs requested funding from any other city. She asked if the PTOs could be required to request support from neighboring cities. Member Harnik recounted that when she was on the Board of the Palm Desert High School Foundation they would regularly ask for funding from other cities and they never received anything with the exception of one check a number of years ago from the City of Rancho Mirage in the amount of $1,500. Ms. Ortega highlighted that Gerald Ford is in Indian Wells, but for a number of years also received funding from Palm Desert in the same amount as other Palm Desert elementary schools due to the fact that approximately 50% of their students are from Palm Desert. It is located directly across from Palm Desert Country Club, so children from that neighborhood would attend Gerald Ford according to the District's boundaries. Indian Wells provides a DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 4 of 16 March 21, 2017 significant amount of funding to Gerald Ford Elementary but does not fund any other schools such as the middle school or high school even though Indian Wells students would attend these schools. The Committee made the decision to focus its efforts on public schools with a Palm Desert address, understanding that the elementary school students of Indian Wells would be supported at Palm Desert middle and high schools. Member Jonathan mentioned that the City of Indian Wells recently revised its funding procedures, and now uses a one-time annual process similar to Palm Desert. Any other request outside of the annual process is automatically denied, and they strictly adhere to their guidelines. Ms. Ortega added that the City of La Quinta only allows funding from any agency to be awarded every other year. This discourages the agencies from becoming reliant on the City's annual funding to be successful. The City of Rancho Mirage maintains a $2,000 limit for school funding within the Palm Springs Unified School District. Member Harnik suggested that the Council only consider emergency funding for school organizations applying outside of the normal process. Following discussion, she stated that she does not consider funding for a last-minute trip to a competition or festival to be an emergency. Member Jonathan clarified that school organizations receive matching grants and are required to spend $2 for every $1 reimbursed by the City, so an award of $3,000 would require an expenditure of $6,000 on approved items. 1. CARTER ELEMENTARY PTO — Request in the amount of $3,000 Member Aylaian noted that the application included a request for scholastic readers as well as other items, and the guidelines stated that scholastic readers would not be an acceptable expense. She questioned how this would be addressed. Ms. Ortega replied that all approved items would be listed in the agreement with the associated dollar amount per approved item, and scholastic readers were not included in staff's recommendation for approval. Discussion evolved to the lack of an application submitted by Lincoln Elementary PTO. Member Jonathan pointed out that the demographics for this school's location positions it as the most in need of assistance and was curious as to why they had not submitted an application. Ms. Ortega reported that she contacted the principal during the last cycle and was told that they did not have the manpower or time available to file an application, but would look at it for the following cycle. They did not submit one this year either. Member Harnik furthered that she had also approached the principal to coordinate an award of $10,000 from Wal-Mart Neighborhood Market when it first opened, and her call was not returned. Member Harnik went to meet with the principal and offered to help fill out the paperwork to receive the award and they did not follow up. It was the consensus of the Committee to recommend that funding for Carter Elementary PTO be approved in an amount not to exceed DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 5 of 16 March 21, 2017 $3,000 in matching funds for field trip transportation, and history and science assemblies as requested. 2. PALM DESERT CHARTER MIDDLE SCHOOL PTO — Request in the amount of $7,500 It was the consensus of the Committee to recommend that funding be approved in an amount not to exceed $7,500 in matching funds for field trip transportation and author assembly as requested. 3. PALM DESERT HIGH SCHOOL FOUNDATION — Request in the amount of $7,500 It was the consensus of the Committee to recommend that funding be approved in an amount not to exceed $7,500 in matching funds for Turnitln software, academic decathlon participation (transportation and registration), and educational field trips as requested. 4. RONALD REAGAN ELEMENTARY SCHOOL PTO — Request in the amount of $6,000 Member Aylaian addressed the types of materials that would be acceptable under this award. The guidelines recommend against funding for rewards and medals, yet the read-a-thon includes such rewards. Member Harnik recommended that the guidelines be revised to allow reading program rewards, as they are directly linked to encouraging reading, thus increasing the reading ability of elementary school students. It was the consensus of the Committee to recommend that funding be approved in an amount not to exceed $3,000 in matching funds for read-a-thon materials and supplies as requested. 5. WASHINGTON CHARTER PARENTS CLUB FOUNDATION — Request in the amount of $12,350 Member Jonathan noted that the request was substantially higher than the others, and that the school does great things for all their students. He suggested a higher award. Member Aylaian responded that it seems at least once a year there is a request from Washington Charter for additional funds outside of this particular award, and routinely request funding for a variety of ventures. Member Harnik added that when she first became mayor there was such a large amount of requests that she asked staff to prepare a matrix detailing how much funding Palm Desert voluntarily gave to support its schools outside of pass -through funds. She felt that it had been forgotten how much assistance Palm Desert provides to its schools. Member Jonathan noted that most other requests were being recommended to receive the amount they requested, whereas DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 6 of 16 March 21, 2017 Washington Parents' Club requested the most and was recommended for the same as the other elementary schools. Chairman Moore stated that a number of years ago, in an effort to curtail the number of requests that went individually before Council, it was determined that a threshold be established for Palm Desert public elementary schools, with a slightly higher threshold for the middle school, and slightly higher again for the high school, understanding that there was only one middle school and high school in Palm Desert. Member Harnik stated that it would be more important to include Lincoln Elementary in the awards than to increase the existing requests. Member Jonathan said he would work with DSUSD to have Lincoln Elementary's PTO included in the future. Member Jonathan wondered if an increase in Outside Agency funding would ease the number of requests and awards during the year. Chairman Moore informed the Committee that the Council made the decision many years ago to add the PTOs to the list of eligible agencies that could apply for Outside Agency funding due to the bombardment of requests from so many individual school groups. Every group from band boosters to robotics, from football to cheer teams requested funding for each of their programs, and in one instance one school's annual requests exceeded $25,000. Since funds at that time were awarded on a first -come, first -served basis, it often resulted in the same groups or clubs receiving the funds while the others were denied. In an effort to grant all school clubs the same opportunity and to avoid the appearance of "playing favorites", the City Council determined that it would be more appropriate to award the funding to the PTO and direct the booster clubs to request their funding through their respective PTOs. It was the consensus of the Committee to recommend that funding be approved in an amount not to exceed $3,000 in matching funds for McCallum Theatre Art Institute participation as requested. MOTION was made by Member Harnik that the City Council approve a matching funds grant for the purposes as stated to the following organizations: Carter Elementary PTO - $3,000; Palm Desert Charter Middle School PTO - $7,500; Palm Desert High School Foundation - $7,500; Ronald Reagan Elementary PTO - $3,000; and Washington Charter Parents' Club - $3,000. Motion was seconded by Member Aylaian and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. D. AWARD OF OUTSIDE AGENCY FUNDING — 100% Grant Chairman Moore reminded the Committee that school organizations receive matching grants. All other agencies receive 100% grants. DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 7 of 16 March 21, 2017 1. ACT FOR MULTIPLE SCLEROSIS — Request in the amount of $5,850 Member Jonathan noted that the request for strength training submitted by ACT for MS only provides training for five residents, and it seems to be a large expense to serve such a small segment of the population for a short duration. Member Harnik stated that she has always rallied for this organization and provided some background information relative to how it started. She continued that in her view the application does not speak to what ACT for MS actually accomplishes for the Palm Desert population, emphasizing the improved quality of life afforded to its clients. Member Jonathan responded that he supports the mission of the organization, but the cost seems high for what is provided. Following discussion, Member Harnik asked staff to determine how many people utilize the aquatic program, and what type of expenses were associated with it. Her understanding is that it takes place at Palm Desert's Aquatic Center. She stated it seemed this would have more participation. She would like to see a broader reach for the amount of funding provided, and Member Jonathan agreed he would prefer funding be utilized for a program other than strength training. MOTION was made by Member Jonathan to recommend that the City Council approve the request in an amount not to exceed $5,000 for expenses to be identified demonstrating services to a broader reach of Palm Desert residents. Motion was seconded by Member Harnik and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 2. AMERICAN CANCER SOCIETY CA DIVISION — Request in the amount of $2,500. Chairman Moore noted that the full amount requested is to be used to fund the annual Relay for Life event held at the Civic Center Park. Member Aylaian stated that she liked that the event is in Palm Desert again, as it has been in other cities in previous years. Member Harnik inquired how much was raised at last year's Relay for Life event and ask staff to include the total raised in the staff report to Council. [Following the meeting, it was determined that the Relay for Life event raised a net total of $54, 730.38] MOTION was made by Member Aylaian to recommend that the City Council approve the request in an amount not to exceed $2,500 for park registration fees and rentals as requested. Motion was seconded by Member Harnik and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 3. BIGHORN INSTITUTE — Request in the amount of $5,000. Member Jonathan recused himself from discussion of this item. DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 8 of 16 March 21, 2017 Member Aylaian stated that she would support the request of $1,000 for educational materials. Member Harnik noted that several valley cities had concerns relative to the funding of this organization and she would be hesitant to recommend approval of their request. Mr. Stendell stated that he served on a trails management subcommittee and that this organization seemed to constantly be challenged on how they spend their funds and their refusal to release information relative to how public funds were utilized. He recommended that funding not be considered at this time. MOTION was made by Member Harnik to recommend that Council deny funding. Motion was seconded by Member Aylaian and passed by a vote of 4-0, with Members Aylaian, Harnik, Tremblay and Moore voting AYE; Jonathan ABSENT. 4. CHILDREN'S DISCOVERY MUSEUM OF THE DESERT — Request in the amount of $5,000. Member Jonathan mentioned that the organization was experiencing some financial issues, and the Committee expressed concern that they had not followed up with any paperwork other than the agreement for the current year's grant process, Staff's efforts to reach them have been unsuccessful. The organization is running into the same issue that many charities have faced in recent years, which is that their original benefactors are aging and sufficient additional donors have not been identified to sustain their expenses. While the financial issues are not a deterrent to providing funding for the upcoming year, the Committee should monitor the situation in future years. Chairman Moore suggested that if the Committee intended to recommend an award of funds, the motion could contain a caveat that the current year's funds must be expended in full. It was recommended that this caveat be added to any organization who received funding in the prior year. MOTION was made by Member Aylaian to recommend that the City Council approve the request in an amount not to exceed $5,000 for 100 family admission passes to low-income Palm Desert residents, artist stipends and supplies as requested. Motion was seconded by Member Harnik and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 5. COACHELLA VALLEY SYMPHONY — Request in the amount of $2,000 Chairman Moore stated that staff conducted an initial review of the application. Staff then requested more specific information to determine how the organization planned to utilize the funds. Member Harnik informed the Committee that Dr. Lindley had contacted her on a few occasions to request funding, and was advised to complete an DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 9 of 16 March 21, 2017 application for funding. Chairman Moore added that the same individual had contacted Mr. Thomas Soule, Marketing Manager, on several occasions and he had also directed her to fill out an Outside Agency application. Member Aylaian and Member Harnik stated that this was a good cause, and Member Harnik added that she had attended a recital and was impressed by their performance. MOTION was made by Member Aylaian to recommend that the City Council approve the request in an amount not to exceed $2,000 for concert support as requested. Motion was seconded by Member Harnik and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 6. FAMILY YMCA — JEAN BENSON — Request in the amount of $40,000 Chairman Moore noted that this application is received every year and the same amount of funding is awarded. She asked if this organization might be better served with a separate agreement rather than applying for Outside Agency funding each year. The amount of documentation required is Tabor -intensive for both City and YMCA staff. Member Aylaian asked if they could just submit the audited financial statements. Member Jonathan stated that he would be comfortable with just receiving a list of expenditures rather than a copy of each receipt and cancelled check. It was recommended that if a list of children was provided to substantiate any subsidies, it should only provide first names and last initial, and a total amount subsidized rather than individual amounts per child. MOTION was made by Member Harnik to recommend that the City Council approve funding in an amount not to exceed $40,000 for financial subsidies, supplies, utilities (electric), and cleaning supplies and service as requested, and that the organization should substantiate their expenses with a list or spreadsheet along with the audited financial statements. Motion was seconded by Member Jonathan and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 7. FAMILY YMCA — SAN PABLO — Request in the amount of $10,000 Chairman Moore noted that this year there were a number of expenses related to leading a class at the YMCA as part of the summer program. Since the class instructor was an independent contractor who was paid a stipend, it was considered an acceptable reimbursable expense. It was recommended that the same guidelines for documentation be followed for this request as for the Jean Benson Childcare Center request in Item D.6. MOTION was made by Member Harnik to recommend that the City Council approve funding in an amount not to exceed $7,500 for teen summer program support as requested, and that the organization should substantiate their expenses with a list or spreadsheet along with the audited financial statements. Motion was DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 10 of 16 March 21, 2017 seconded by Member Jonathan and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 8. FRIENDS OF THE DESERT MOUNTAINS — Request in the amount of $10,000 Member Jonathan reported that he attended the Wildflower Festival this year and it was well -attended by a wide range of age groups. He stated this is a good program for the City, and he has since met with organization representatives to ensure that the Palm Desert name is included in any future advertising for the festival. Member Harnik also attended and said she noticed the lack of Palm Desert's name on the materials, so she was happy to hear Member Jonathan had already addressed the issue. Members Jonathan and Harnik both remarked on the work carried out on the trails to ensure they have proper signage and to enhance safety on the trails. Chairman Moore asked if this organization and event would be better served under the Special Events budget with an appropriate agreement. Member Jonathan agreed that this is an event that he could see becoming a signature Palm Desert event so should be handled by the Special Events division. Member Harnik agreed, and stated if they chose to apply for a future grant for trails enhancement and upkeep, such an award would be in keeping with the Outside Agency funding mission. Mr. Stendell added that over the course of two years, the organization works on just about every part of every trail in Palm Desert and they do a phenomenal job. Member Moore stated that staff will make the appropriate internal adjustments to ensure this program is moved from Outside Agency to Special Events oversight. MOTION was made by Member Jonathan to recommend that the City Council approve funding from the Special Programs budget in an amount not to exceed $8,000 for Wildflower Festival event support as requested, and that the organization should include Palm Desert logos as appropriate on all festival materials. Motion was seconded by Member Harnik and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 9. HISTORICAL SOCIETY OF PALM DESERT — Request in the amount of $19,300 Chairman Moore reported that no funding for FY 16/17 has been disbursed to date. She reminded the Committee that there is an ongoing issue with the organization's tax-exempt status. They reside in a building that is owned by the City, so there are no property taxes due by the City. The organization has stated that the issue with its tax-exempt status has been resolved. Member Aylaian has asked them to submit DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 11 of 16 March 21, 2017 something in writing indicating that it is resolved, and they have not yet submitted anything. Furthermore, while they are not subject to real property tax, they are obligated to pay possessory tax. Historical Society staff did not pay any of the bills received as they believed they were a record that did not require action. This continued for a number of years until the County issued a notice of seizure sale. The City owns a number of items in the building, and wanted to ensure that its items were not subject to seizure. The concern arose that any funding provided may also be subject to seizure. As a result, the City has not issued funding and has requested a five-year business plan to determine how the Historical Society intends to move forward. Chairman Moore recommended that the funding could be approved but should be held until these issues are resolved and demonstrate as such. Member Jonathan agreed that funding should be set aside to be awarded once any issues with the County, State and IRS are resolved. MOTION was made by Member Jonathan to recommend that the City Council approve funding in an amount not to exceed $19,200 for second grade tours, displays, speaker programs, special events, archiving, insurance, alarm, insurance and facility upkeep as requested. Motion was seconded by Member Aylaian and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 10. MCCALLUM THEATRE — Request in the amount of $5,000 Member Harnik serves on the Board of Trustees and as such recused herself from discussion of this item. Member Aylaian stated that the McCallum Theatre does not necessarily need the funding as they are doing very well. It is, however, important that the City partner with the organization. Member Jonathan asked if the City provided any other funding to the McCallum Theatre. Chairman Moore replied that oftentimes this organization will request funding for a program, a guest speaker for example, then PTO groups request separate funding from the City to attend the same program. Additionally, the McCallum submits separate requests for programs such as Family Fun Day. Chairman Moore recommended that they should submit one application that lists all of the events so staff and the Council have a better understanding of what they are requesting over the course of a year. Member Jonathan stated he was in agreement that it was a worthwhile agency to fund, and in future they should submit all requests at once to the Committee. He furthered that he met with McCallum's President and CEO, Mitch Gershenfeld, and they DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 12 of 16 March 21. 2017 discussed some programs that Mr. Gershenfeld would like to see the City fund. Member Aylaian mentioned that staff has asked for a separate proposal for events that may tie into a First Weekend event. Member Moore reminded the Committee that the City has funded parking lot landscaping for the McCallum in the past, asserting it was one of many ways the City assists the McCallum other than a direct 9 rant. MOTION was made by Member Aylaian to recommend that the City Council approve funding in an amount not to exceed $5,000 for Field Trip Series performances and resource materials as requested. Motion was seconded by Member Jonathan and passed by a vote of 4-0, with Members Aylaian, Jonathan, Tremblay and Moore voting AYE; Harnik ABSENT. 11. NEURO VITALITY CENTER — Request in the amount of $9,700 Member Moore stated that this organization was approved for two grants through CDBG for the upcoming fiscal year. Typically when an organization is funded through CDBG, it is not funded through the Outside Agency, so staff recommended that funding be denied this year. MOTION was made by Member Jonathan to recommend that the City Council deny funding. Motion was seconded by Member Harnik and passed by a vote of 5-0, Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 12. PALM DESERT YOUTH SPORTS ASSOCIATION (PDYSA) — Request in the amount of $5,000 Member Jonathan reported that he did not receive any notification of opening day this year until the City Council meeting two days before the event. If they are sponsored for the next fiscal year, he would like it conveyed that since the City is providing a grant, Council members should receive a suitable invitation with sufficient time to plan for attendance. Member Harnik agreed, noting that she found out the actual date of the event on the day before the Council meeting. Member Aylaian questioned if funding a flyover and carnival was the best way to support this organization, stating that the funding for baseball buddies and scholarships were a better use of funds for Palm Desert youth who would not have the opportunity otherwise. Chairman Moore summarized the events that led to the grant approval last year, reminding the Committee that PDYSA applied for a grant for $3,000 for opening day. They later revised their request to $12,000 for opening and closing day. Discussion at the Committee level solidified the desire to increase the amount from the original request of $3,000 to a new total of $5,000 with the caveat that the increased amount be used for scholarships for low-income Palm Desert children. When this year's application was submitted, it was communicated that the DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 13 of 16 March 21, 2017 organization does not maintain this type of information and do not track who received funding. They indicated that the registration is done online and if someone says they cannot afford it then they provide registration at no cost. Member Harnik expressed her dissatisfaction, stating that the portion of the grant last year that was most important to the Committee was the scholarships. Chairman Moore added that there are numerous examples of acceptable expenses as uniforms, registration, and other expenses that would be more suitable than opening day celebrations. Member Jonathan recalled a meeting with one of the organizers last year reinforcing that they should follow the correct channels to apply for funding, and Member Harnik stated that at the last meeting the Committee agreed if the organization does not maintain proper records then they should not be funded out of concern for the City's need to ensure fiscal responsibility. She shared that in her experience as the Palm Desert High School Foundation President, she was responsible for submitting the records for the grant, and while it is time-consuming it is not difficult. Member Harnik said that the purpose of PDYSA is not in dispute and that it is a program that is worthwhile. Member Aylaian described it as an enrichment program that will change the participants' lives, and the scholarships are so much more important than a party. Member Harnik pointed out that the Committee met a number of times to review PDYSA's request, and summarized that all that has to be done is fund kids who cannot afford to attend. Member Jonathan recommended that the application be rejected, and that PDYSA be informed that they have an opportunity to resubmit a request in the same amount of $5,000 showing that the expenses would be used exclusively for scholarships, registration or other direct support to families. Mr. Stendell added that PDYSA provides various price points for signing up depending upon when they sign up, and it averages $100 per child, with approximately 800-1,000 participants. Members Jonathan and Harnik agreed that there must be a tracking method that would demonstrate which families pay the registration fee and that there should be one parent out of the hundreds of participants who could organize a tracking system if there is not one already in place. Chairman Moore informed the Committee that she participated in this league with her own son. She stated that parents spend a lot of time volunteering and participating in various ways, and staff spends numerous hours working to obtain paperwork and follow-up documentation to keep the organization in compliance with the funding guidelines. She also pointed out that this group is consistently funded, and there is a misconception that Palm Desert Youth Sports Association includes all youth sports; it only includes softball and baseball. Mr. Stendell furthered that Palm Desert provides the fields to youth and peer groups at no charge, and the City bears the majority of DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 14 of 16 March 21, 2017 the cost of maintaining the fields, which includes watering, seeding and grooming the fields to keep them in great playing condition. Member Harnik suggested that staff return to PDYSA representatives and inform them that funding for the carnival will not be supported, but the Committee is interested in providing funding for scholarships and supplies for children who need uniforms, bats, mitts or other suitable expenses. Member Jonathan agreed that it was important to communicate that it would have been easy to just deny funding, but the Committee feels an opportunity to resubmit is appropriate at this point. He added that if the organization does not have the financial records that appropriately track their revenues, then they should not be supported with City funds. Member Harnik asked that it also be communicated that the standard is high due to the scrutiny that governments face, particularly when funding other organizations. The City needs PDYSA to utilize the funding in a manner that is clearcut and cannot be questioned, especially when it is denying funding to other organizations. MOTION was made by Member Jonathan to reject the current request, and recommend that PDYSA submit a revised request in an amount not to exceed $5,000 focused on league play, scholarships, registration and baseball buddies with expenses documented to the City's satisfaction, and to recommend that the City Council set aside funding in an amount not to exceed $5,000 for said expenses until such time that an acceptable application is filed. Motion was seconded by Member Harnik and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 13. PALM SPRINGS CULTURAL CENTER — Request in the amount of $7,200 Member Moore clarified that this request was specifically to fund the Farmers' Market in Palm Desert, which is one of three farmers' markets organized by the Palm Springs Cultural Center. The market occurs every Wednesday morning during season. Mr. Stendell informed the Committee that following a request from the organizers, the Farmers' Market was relocated to the entryway of Entrada del Paseo and is now visible from Hwy 111. This move also freed up parking at the Chamber building, which is where the market was previously located. As a result of the move, a traffic plan was requested, and the City covers the cost of traffic control barricades for each event. This particular request is to fund the advertising and promotion of the farmers' market, and to fund the Film Series at the Palm Springs Art Museum in Palm Desert. They also would like to fund a nutrition program at Palm Desert schools. DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 15 of 16 March 21, 2017 Member Harnik said it would be important to know which schools would be part of the nutritional program, and what that program would include. Member Jonathan asked if Palm Desert should host its own farmers' market rather than paying another organization to do it. Member Aylaian cautioned that a certified farmers' market is quite involved; the City would be required to negotiate its own farmers and vendors, and monitor the standards and controls to ensure it was in compliance. She summarized that she did not believe it was a project Palm Desert should or would want to take on at this point. Member Harnik recommended that the funds be considered in the amount of $5,000, and to request a report providing more information on the nutrition program and participating schools. MOTION was made by Member Harnik that the City Council approve the request in an amount not to exceed $5,000 for the school nutrition program, Palm Desert farmers' market advertising, and the film series at the Palm Springs Art Museum in Palm Desert. Motion was seconded by Member Aylaian and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. 14. VIRGINIA WARING PIANO COMPETITION — Request in the amount of $20,000 Member Harnik stated that this was a valuable program and she loves it, but wondered if the City should be funding it. Member Jonathan agreed, adding that while he supports the arts personally, he does not believe the City's assistance is justified. Member Aylaian asked if Palm Desert children play in it, and wondered if it really brings visitors and tourists as the organization has contended. Member Harnik replied that the participants are often from other areas. She does not believe it brings the level of visitors and tourists claimed, other than those who are coming to participate. She has asked previously if Palm Desert students can attend the performances, or if some of the participants can perform in local schools. Member Jonathan replied that it is possible as he has seen it happen during a previous competition. MOTION was made by Member Jonathan to recommend that the City Council approve the request in an amount not to exceed $10,000 for expenses associated with performances at Palm Desert schools and the community outreach program. Motion was seconded by Member Harnik and passed by a vote of 5-0, with Members Aylaian, Harnik, Jonathan, Tremblay and Moore voting AYE. VII. CONTINUED BUSINESS — None. DRAFT MINUTES - OUTSIDE AGENCY FUNDING COMMITTEE Page 16 of 16 March 21, 2017 VIII. INFORMATIONAL ITEMS — None. IX. REPORTS AND REMARKS — None. X. ADJOURNMENT Chairman Moore adjourned the meeting at 5:05 p.m. Respectfully submitted, [0 [tip Niamh Ortega, Recording Secretary CITY OF PALM DESERT OUTSIDE AGENCIES/CHARITABLE CONTRIBUTION FUNDING REQUESTS Guidelines for Non -Profit Agencies, PTO groups and school organizations 1. The agency or group ("Applicant") requesting funds must be in existence for a minimum of five (5) years in order to be considered for funding by the Outside Agency Funding Committee. 2. The Agency must also be of verifiable non-profit status and presently providing charitable, public benefit, public welfare or educational services to persons residing in the City of Palm Desert or its sphere of influence (the "City"). 3. The Applicant must have an existing program in place and a staff that is ready and willing to provide services to the City for the benefit of its residents. Funds will not be contributed to any agency or group for "startup" costs. 4. The Applicant should submit to the City an application setting forth in detail its request for funding, including a statement of purpose detailing specifically the services it intends to provide for the City, how and where the contribution from the City will be allocated, and the quantity and quality of such proposed service. 5. The funds contributed to the Applicant will be donated for the purposes of providing a program or service to the City of Palm Desert, or its sphere of influence, to the extent possible. Said funds are not designated for capital purchases, equipment, or projects, and cannot be used for salaries. 6. The Applicant agrees to use the funds granted by the City to provide only the services represented in its application for funding. Additionally, the Applicant will explain how the services will benefit the City's residents. 7. The City must have the desire to have the services as detailed in the Applicant's application performed for the City and its residents by the agency or group. Priority is given to agencies providing a direct benefit to Palm Desert residents. 8. The City will review the Applicant's application and tax exemption certification and, upon review and discussion, will determine if the expenditure of funds for these services is in the public's interest. 9. Where the Applicant is an audited entity, the Applicant's independent auditor will need to make a footnote in the financial statements confirming the use of the City's contribution in the manner set forth above, as well as the executed agreement. 10. Where the Applicant received funding for the current fiscal year, all documents must be submitted and agreement terms complete prior to funding disbursement for the following fiscal year. Outside Agencies/Charitable Contributions Funding Request Guidelines Page 2 of 3 11. Application and all supporting documents are to be submitted by the designated deadline to be considered for funding. Late or incomplete applications will not be accepted. 12. The Agreement is for the period of July 1 through June 30 of the following year. Services must be provided and funds must be disbursed during this time period. No payment will be made for services rendered after June 30 of the designated year. 13. Organizations requesting funding after the deadline for the annual review has passed may submit an application to the City Manager for special consideration. Award of funds in this circumstance is rare, and is contingent upon available funds remaining in the Outside Agency budget following disbursement to organizations compliant with the Committee's annual deadlines. 14. Golf events and luncheon/dinner sponsorships do not qualify for Outside Agency funding. Special events are managed by the Special Programs department. Emergency contributions for situations such as wildfire relief assistance and farm workers' aid and other emergency situations should be funded from a source other than Outside Agency funds, and should be reviewed by Council on a case -by -case basis to determine the appropriate source of funding. 15. All paperwork must be submitted by June 30 in order to receive reimbursement. No reimbursement will be processed unless all required documents are received and the agreement is complete. Reimbursement requests must be reviewed and signed by the principal prior to submittal to the City of Palm Desert. Failure to meet the terms of the agreement and submit required completed paperwork by the deadline will result in forfeiture of all funds. 16. For school organizations and clubs, instead of a grant, a 50% matching funds reimbursement is awarded, wherein once the organization has spent the required funds, they should submit the appropriate receipts for reimbursement by the City at a rate of 50% of the total receipts up to the amount awarded. Additional Guidelines for School Organizations The City of Palm Desert may elect to award funding to a Parent Teacher Organization, Parent Club, School Foundation or other formal group ("PTO") of a Palm Desert public school in an effort to enhance educational programs and improve the scholastic abilities of the student body as a whole, and to support the various booster clubs at the school. The City aims to support efforts furthering student accomplishments in the areas of Science, Technology, Engineering and Mathematics (STEM) as well as college preparation programs, and requires that the PTO be in good standing with the City relative to any and all previous grant applications and agreements. The City does not award funding for instruction, tuition or supervision as these costs are not the responsibility of a municipality. Additionally, the City will direct any individual requests received from school clubs (boosters, dance, cheer, robotics, etc.) during the funded year back to the PTO for their consideration and recommend they submit a request to their PTO for inclusion in the upcoming application year. The City encourages the PTO to fundraise and support specialty programs for overall student enhancement as they see fit. The City has chosen focused its interest in providing a charitable contribution to specific areas the City regards as beneficial to a majority of students. Outside Agencies/Charitable Contributions Funding Request Guidelines Page 3 of 3 The following list has been compiled to assist when considering a request for award of funds. Examples of Acceptable Expenditures • Math and science -oriented computer software programs (e.g. Turnitln, StateStandards) • Odyssey of the Mind, SAT preparation and AP testing fee reimbursement • Tutoring and scholastic reading programs and materials (does not include tutor compensation) • Bully-, drug-, and gang -prevention programs and assemblies • Curriculum -based assemblies (authors, demonstrations) • Educational, curriculum -based field trip admission and transportation for students only o Examples of acceptable field trips: Living Desert, Riley's Farm, Museum of Tolerance, Coachella Valley Water District. Show how the trip relates to the curriculum and follow up with student reports on what was learned. o Unacceptable field trips: Disneyland, SeaWorld, Knott's Soak City, Knott's Berry Farm o Transportation costs for approved travel should be reasonable such as school bus or coach. Limousines or other modes of transportation not regularly provided for school use are not reimbursable. • Any other expenditure requests not specifically listed must be submitted and discussed during the application process to determine if they would qualify for reimbursement. No adjustments will be made once the agreement is finalized. Examples of Discouraged Expenditures • Awards assemblies and supplies (i.e. student of the month and improvement awards) • Tuition, salary, or supervision expenses • Supplemental classroom materials or library supplies • Capital equipment or hardware such as computers, laptops, televisions or projector screens • Culinary, photography, or other specialty programs • Reward or social parties (i.e. pizza party, ice-cream social) • Food, drinks, snacks of any kind for any meetings or activities • School dance, promotion, graduation expenses • Hotel accommodations for any activities or events • Fundraising, alumni or celebratory activities (bounce house rentals, carnival booths, festival events) The above guidelines are incorporated and made a part of any funding application or approved agreement to provide service using Outside Agency funds.