HomeMy WebLinkAboutRes 06-148 Dissolving Sister Cities CmteCITY OF PALM DESERT
CITY MANAGER'S OFFICE
AGENDA REPORT
SUBJECT: Resolution No. 06-148, A Resolution of the City Council of the City
of Palm Desert, California, Dissolving the Palm Desert Sister
Cities Committee and Approval of the Non -Profit Organization
Funding Agreement between the City of Palm Desert and the
Palm Desert Sister Cities Foundation, in the amount of
$96, 707.02.
SUBMITTED BY: Stephen Y. Aryan, Assistant to the City Manager
Sheila R. Gilligan, Assistant City Manager, Community Services
DATE: November 16, 2006
ATTACHMENTS: (1) Resolution No.06-148
(2) Outside Agency Funding Agreement -Palm Desert Sister Cities Foundation
(3) Palm Desert Sister Cities Foundation Budget White Paper
(4) Certified Articles of Incorporation -Palm Desert Sister Cities Foundation
(5) Palm Desert Sister Cities Foundation Budget Tracking Report (11/3/06)
RECOMMENDATION
By Minute Motion:
1. Approve Resolution No. 06-148 , a resolution of the City Council of the City of
Palm Desert, California, dissolving the Palm Desert Sister Cities Committee.
2. Approve the Non -Profit Organization Funding Agreement between the City of
Palm Desert and the Palm Desert Sister Cities Foundation, in the amount of
$96, 707.02.
3. Appropriate $96,707.02 for funding assistance to the Palm Desert Sister Cities
Foundation, from Account No. 110-4416-414-31-26.
EXECUTIVE SUMMARY
During the consideration of the Sister Cities budget for fiscal year 2004/2005, the City Council
and the Palm Desert Sister Cities Committee (PDSC) determined that re -organizing the
Committee as a separate 501(c)(3) tax-exempt, non-profit organization, would enhance its
commitment towards creating programs and collaborations that exemplify the spirit of Sister
Cities.
The law firm of Green, de Bortnowsky & Quintanilla assisted the Committee in the Articles of
Incorporation process on a pro bono basis. The first step in applying for non-profit status is the
formation of Articles of Incorporation, which was recently approved by the Secretary of State's
Office on October 5, 2006. The Palm Desert Sister Cities Committee can now be dissolved and
is considered a non-profit organization called the Palm Desert Sister Cities Foundation (the
Foundation).
Resolution No. 06-148
November 16, 2006
Page 2of3
The Foundation has approved Bylaws that define the rights and obligations of its officers,
directors, and members. The Bylaws contain the standard procedures for conducting meetings
and making policy. During the FY 06-07 budget study sessions, the Foundation requested City
funding in support of its programs and administration for $136,660. However, Staff's position
was that the Foundation could implement its identified programs at a cost of $84,500. Although
this is a reduction of approximately 38%, this revised budget has the necessary resources for
the Foundation to maintain its programs and carry out its goals. The Foundation will also
receive the net profit from the 2006 Sister Cities Golf Tournament fundraiser, which was
$12,805.08, for a total funding of $97,305.08.
To date, the Foundation spent approximately $598.06 of its FY 06-07 budget. Therefore. the
attached funding aqreement outlines a total financial request of $96,707.02. As with any
outside agency funding, the Foundation will have to submit periodic reports to the City providing
specific information on the funds spent to date. To formally dissolve the Palm Desert Sister
Cities Committee, Staff recommends that the City Council approve Resolution No. 06- and
approve the Outside Agency Funding Agreement with the Palm Desert Sister Cities Foundation,
in the amount of $96,707.02.
DISCUSSION
The City of Palm Desert established its Sister Cities Committee with adoption of Resolution No.
92-93 on September 24, 1992. As it is currently structured, the Committee consists of thirteen
permanent members and can have ex-officio members as appropriate. The Committee's
objectives are to advise, monitor, and assist the City Council on the best methods to promote
the exchange of culture, information, and international relations with designated sister cities.
Palm Desert currently has two existing Sister City relationships with the city of Gisborne, New
Zealand and the city of Ixtapa-Zihuatanejo, Mexico.
In an effort to enhance the outreach of this program into the community, the City Council and
Committee decided to re -organize the Sister Cities Committee as a separate 501(c)(3) tax-
exempt, non-profit organization. However, the City of Palm Desert desires to continue providing
assistance in hosting cultural exchanges and supporting the Committee financially and through
City participation. Such action will provide a foundation to fabricate the future of the program
and enhance the Committee's efforts to date.
The law firm of Green, de Bortnowsky & Quintanilla assisted the Committee and Staff in the
501(c)(3) application process. An initial step the Committee undertook was the submittal of
Articles of Incorporation to the Secretary of State. The next critical path was the establishment
of the Bylaws, which the Foundation approved. Work has commenced on preparing the lengthy
1023 application process for federal tax exemption status. Please note that this process does
not affect the Committee's conversion into a non-profit entity. The Articles of Incorporation were
recently approved by the Secretary of State's Office on October 5, 2006. The Palm Desert
Sister Cities Committee can now be dissolved and is now called the Palm Desert Sister Cities
Foundation (the Foundation), a non-profit entity that is seeking federal and state tax exemption.
G \CityMgr\Jane Stanley\Sister Cities Committee Dissoluton.doc
Resolution No. 06- 148
November 16, 2006
Page 3 of 3
FISCAL CONSIDERATIONS
As a separate non-profit entity no longer under the City's oversight, Staff recommends that any
funding request by the Palm Desert Sister City Foundation will have to follow the same
procedures required of other non -profits seeking City financial support.
During their annual retreat, the Palm Desert Sister Cities Foundation established a budget that it
asserts will support its programs and desired goals as a non-profit entity. This budget totaled
$154,160 and included $61,070 for programs/Foundation expenditures, and $93,090 in
administration costs. The Foundation requested the City provide funding in the amount of
$136,660. This amount accounts for a $17,500 deduction (the projected revenue amount) from
the total budget request.
Staff did not recommend funding the Foundation in the amount requested ($136,660), but
recommended a budget in the amount of $84,500, plus the Foundation's net profit of $12,805.08
from their 2006 Golf Tournament fundraising event. To date, the Foundation has spent
approximately $598.06 of its FY 06-07 budget. Therefore, the attached funding agreement
outlines a total financial request of $96,707.02. As with any outside agency funding, the
Foundation will have to submit periodic reports to the City providing specific information on the
funds spent to date, along with other requirements outlined in the Agreement.
As part of this process to formally dissolve the Palm Desert Sister Cities Committee, Staff
recommends that the City Council approve Resolution No. 06- and approve the Outside
Agency Funding Agreement with the Palm Desert Sister Cities Foundation, in the amount of
$96,707.02. Please note that once the Foundation is funded at the recommended level, the
previous fundraising revenues account will be dissolved into the City's General Fund.
The newly formed Sister Cities Foundation, although no longer supported by City Staff, will also
have a designated Staff liaison to coordinate any City's interaction with this newly formed
nonprofit agency, if necessary. Staff would not be working for the Foundation; this relationship
would be similar to the City's current interaction with the Palm Desert Historical Society.
While the advancement of the Sister Cities Committee into a non-profit organization was a very
labor-intensive process, as a 501(c)(3) non-profit organization, the Palm Desert Sister Cities
Foundation can continue its tradition of excellence in fostering global cultural awareness, while
still maintaining a collaborative effort with the City of Palm Desert in attaining its goals for a
vi?rant and,pTNuctive program.
S itt d by:
l
Sheila R. Gilliga
Assistant City Manager, o munity Services
Ap ed b
1/2
!W,
Pa I Gibeo , Finance Director
S ephen Y. Aryan
Assistant to th i I
Manager
Carlos L. Ort a, City Manager
G \CrtyMgrUane Stanley�Sister Cities Committee Dissolution doc
REQUEST FOR APPROVAL OF A RESOLUTION DISSOLVING THE PALM DESERT SISTER CITIES
COMMITTEE, APPROVAL OF ITS NON-PROFIT STATUS AND FOR A NON-PROFIT FUNDING
AGREEMENT BETWEEN THE CITY OF PALM DESERT AND THE PALM DESERT SISTER CITIES
FOUNDATION.
'7 '-' ACTION
,",r-PROVED
DENIED,
"E,IVED
OTHER.6U .
r.E1I' DINE
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133ENT, AA
ABSTAIN: AZW
VERIFIED BY:
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Original on File
wit'
City Clerk's Office
RESOLUTION NO. 06-Lit
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT, CALIFORNIA, DISSOLVING THE PALM
DESERT SISTER CITIES COMMITTEE
WHEREAS, the City Council established the Sister Cities Committee on
September 24, 1992, with adoption of the Resolution No. 92-93, for the purpose of dealing
with matters concerning the City's Sister City Program; and
WHEREAS, the Committee's success warranted a membership increase to thirteen
(13) members, which was effected by the adoption of Resolution No. 05-3 on January 13,
2005; and
WHEREAS, over the past fourteen years, the Sister Cities Committee has reviewed
issues of importance within its purview and provided timely advice to the City Council
thereon; and
WHEREAS, due to the success of the Sister Cities Program and in an effort to
enhance its outreach, the City Council of the City of Palm Desert and the Sister Cities
Committee decided to re -organize the Sister Cities Committee as a separate 501(c)(3) tax-
exempt, non-profit organization; and
WHEREAS, California Secretary of State Bruce McPherson officially endorsed the
Articles of Incorporation for the Palm Desert Sister Cities Foundation, as a nonprofit public
benefit corporation, on October 5, 2006.
NOW, THEREFORE, BE IT RESOLVED THAT the City Council of the City of Palm
Desert, California, does hereby determine that it is in the public interest that the Sister Cities
Committee be dissolved at this time.
PASSED, APPROVED, AND ADOPTED by the City Council of the City of
Palm Desert, California, at its adjourned regular meeting held on the 16th day of November,
2006, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JIM FERGUSON, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
AGREEMENT BY NON-PROFIT ORGANIZATION
TO PROVIDE SERVICES TO THE CITY OF PALM DESERT
Fiscal Year 2006-2007
This Agreement is made and entered into this 16th day of November 2006, by
and between the CITY OF PALM DESERT, a municipal corporation (herein referred to
as "City"}, and the PALM DESERT SISTER CITIES FOUNDATiON, a non-profit
corporation (hereinafter referred to as "Contractor").
RECITALS
WHEREAS, the Contractor is a non-profit corporation presently providing
services to persons residing within the CITY OF PALM DESERT, and has staff in place
ready and willing to provide services to the CITY OF PALM DESERT for the benefit of
its residents, and
WHEREAS, the Contractor has submitted to City an application setting forth in
detail its request for funding the services it intends to provide, and the quantity and
quality of such proposed services, which application is the basic document upon which
this Agreement is founded, and which application is incorporated herein by reference as
Exhibit "A"; and
WHEREAS, the City desires to have certain services performed for the City and
its residents by the Contractor, and the City has determined that it is advantageous to
the City and to its residents to have certain services provided by the Contractor, and
that it is in the public interest so to do; and
WHEREAS, the services which the Contractor proposes to provide, and which
the City desires to have provided by the Contractor, are itemized in its application for
funding and in Schedule A.
NOW THEREFORE, in consideration of the mutual promises and agreements
herein contained, and other valuable consideration, the parties hereto, and each of
them, do hereby agree as follows:
1. All recitals set forth hereinabove are incorporated herein as undertakings and
representations by the parties hereto.
2. RESPONSIBILITIES OF CONTRACTOR:
A. Contractor agrees to provide to City all of the services specified and
detailed in its application for funding and in Schedule A, and to conduct all
Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
programs specified therein in a manner to reflect credit upon the City and
Contractor. Contractor represents and warrants to City that it is able to
provide, and will use funds granted by the City to provide the services
represented in Contractor's application for funding. City-provided funds
shall be used only for those purposes specified in such application.
B. Contractor shall report to City in January on the services provided, with
such detail as City may reasonably request; the report may be in the form
attached as Schedule B. Similar information, using the form specified in
Schedule C, shall be provided at the time of any request for funding for the
2006-2007 Fiscal Year.
C. Financial Reporting: Any contractor receiving or due to receive $20,000.00
or more from the City during the 2006-2007 fiscal year shall provide to City
a financial statement prepared by a recognized accounting firm approved
by or satisfactory to City's Finance Director completed within the most
recent twelve (12) months showing the Contractor's, financial records to
be kept in accordance with generally accepted accounting standards. The
report shall include a general ledger balance sheet that identifies revenue
sources and expenses in sufficient detail to demonstrate contract
compliance and be balanced to bank statements. Any organization
receiving or due to receive less than $20,000.00 in the current fiscal year
from the City shall provide a copy of the organization's most recent
charitable trust report to the Attorney General, or other financial
information satisfactory to City's Finance Director. The financial
information provided for in this paragraph shall be furnished no later than
June 30, 2007.
3. RESPONSIBILITIES OF CITY:
A. In consideration of the performance by Contractor of the services as
specified in Schedule A, the City shall pay a one time sum to the
Contractor, during the Fiscal Year 2006-2007, those sums specified in
Schedule A, payable within twenty (20) days of the delivery of an executed
original of this Agreement. No payments shall be made until Contractor
has submitted to City, in form satisfactory to the City's Finance Director, a
request for payment.
B. The appropriation of funds by the City prior to or following the execution of
this Agreement, for the expenditures and services contemplated herein,
shall not create fixed or binding obligations upon the City to pay same to
�a
Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
the Contractor; all payments shall be dependent upon the filing of proper
request. The City may consider, during its mid-year budget review, an
additional ailocation of funds to the Contractor, but no assurance of
additional funding is given.
4. TERM OF AGREEMENT. This Agreement shall be effective as of November 16,
2006 and continue in effect until June 30, 2007, unless sooner terminated in
accordance with the termination provisions set forth hereinafter. The parties
contemplate that the City may desire to enter into a new Agreement for similar
services for the subsequent Fiscal Year, but unless a new Agreement is entered
into, Contractor shall not be obligated to provide any services, nor shall
Contractor be entitled to payment for services rendered, after June 30, 2007.
5. UNILATERAL TERMINATION: Despite the provisions that this contract shall be
in force until June 30, 2007, this Agreement may be terminated by either party,
with or without cause, at any time upon either party giving thirty (30) days' written
notice to the other party of said termination. Upon such notice being properly
given, this Agreement shall terminate upon the date specified in the written
notice. If this Agreement is so terminated the Contractor shall be compensated
for the services provided as of the date of said termination based upon services
rendered prior to termination, with compensation in proportion to the amount of
expenditures and obligations properly shown by reports submitted. In the event
that Contractor has received the full one time sum provided for in this Agreement
at the time of any such termination, Contractor shall promptly refund any surplus
funds to City. Amounts due shall be determined on a prorated basis, in
accordance with Schedule A, with any amounts due to be prorated based upon
the period during which the Agreement continued in effect, prior to termination.
6. RELATIONSHIP OF PARTIES: It is understood that the contractual relationship
of the Contractor to the City is that of Independent Contractor; Contractor is not
the agent of the City, nor an employee of the City. City shall not direct the
manner in which Contractor provides its services, but Contractor shall be
responsible for the results achieved. The means by which Contractor provides
the services specified hereunder shall be determined solely by Contractor. City
shall exercise no control over the manner and details of performance, the specific
hours that any employee of Contractor may work, who shall be employed by
Contractor or which employee is assigned to any particular function or duties; nor
shall City provide supplies or tools utilized to accomplish the tasks undertaken by
Contractor.
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Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
7. ASSIGNMENT: This Agreement shall not be assigned or duties hereunder
delegated by Contractor without the written consent of the City.
8. AMENDMENT: This Agreement may be amended or modified only by written
agreement signed by both parties, and failure on the part of either party to
enforce any provision of this Agreement shall not be construed as a waiver of the
right to compel performance of such provision or provisions.
9. WORKERS COMPENSATION INSURANCE AND OCCUPATIONAL SAFETY
AND HEALTH ACTS: The Contractor shall obtain and maintain during the term
of this Agreement such Worker's Compensation Insurance as may be required by
state law and shall comply in all respects with the provisions of both federal and
state occupational safety and health statutes.
10. LIABILITY INSURANCE: Contractor shall procure and maintain for the duration
of this Agreement liability insurance against claims for injuries to persons or
damages to property in an amount not less than One Million Dollars
($1,00O,OOQ.00) which may arise from or in connection with the activities of
Contractor or employees of Contractor under this Agreement. All such insurance
shall name the City of Palm Desert as an additional insured and, upon written
request, Contractor shall furnish the City with certificates of insurance
documenting such coverage.
11. HOLD HARMLESS: The Contractor's relationship to the City is solely that of an
independent contractor. No employee of the Contractor is an employee or agent
of the City in any respect, and Contractor shall be solely responsible for all
activities of its employees, agents, its own independent contractors and third
parties for all losses, costs, damages or injuries (including wrongful death)
caused by or arising out of any act or omission of the Contractor, its employees,
agents, or independent contractors relating to the services performed or to be
performed by the Contractor hereunder. Contractor specifically agrees to save
and hold harmless the City, its officers, employees and agents from any liability
or claim of liability arising from performance under this Agreement.
12. POLITICAL ACTIVITY PROHIBITED: The Contractor shall not itself, or by its
officers or directors acting on behalf of the Contractor, engage in any form of
political activity in relation to local governmental affairs. This provision shall not
preclude Contractor from supporting or opposing legislation affecting Contractor's
operations or directly affecting Contractor's members, but the Contractor, either
as an organization, or by activities of its officers and directors acting on behalf of
the organization, shall not actively support, endorse or oppose a candidate for
�
Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
local (city, county, school district or other local unit of government) office, or any
local elected official, nor shall any of Contractor's publications, pamphlets,
brochures or promotional newsletters play any such role in local political matters.
Nothing herein shall prevent an officer or Board Member from seeking elective
office in his or her own right, but no endorsement of any such candidacy by the
Contractor shall be permitted. Contractor further agrees not to participate in, or
otherwise intervene in (including the publication or distribution of statements
concerning), any political campaign on behalf of, or in opposition to, any local
elected official or candidate for public office. Nothing herein shall preclude any
individual officer, director or member of the Contractor from taking part personally
in any political campaign, as long as such person's participation is solely as an
individual and not as a representative or agent of the Contractor.
13. COOPERATION WITH CITY OFFICIALS: The Contractor agrees that it will
cooperate and work closely with all officials of the City, including the City
Manager, in its performance of this Agreement.
14. CONTACT PERSONS: All contacts concerning the implementation or
interpretation of this Agreement shall be made between the City Manager on
behalf of City and the Executive Director of Contractor.
15. NOTICES: Whenever it shall be necessary for either party to serve any notice
on the other party respecting this Agreement, such notice shall be served by
certified mail addressed as specified below, unless and until a different address
is specified by either party. Such notice shall be deemed to have been served
within seventy-two (72) hours after the same has been deposited in the United
States Post Office with postage fully prepaid thereon. This shall be valid and
sufficient service of notice for all purposes.
16. OFFICERS AND DIRECTORS: Contractor shall provide to City a current listing
of its officers and directors, and shall, within thirty (30) days after any change in
such listing provide a new up-to-date listing of all officers and directors.
17. ENTIRE AGREEMENT: This Agreement constitutes the entire agreement
between the parties. Any prior representations, promises, or agreements, written
or oral, by whomsoever made, are superseded by the terms and conditions set
forth herein. Any purported term or condition not specified herein shall be
deemed of no force or effect. The application for funding submitted by
Contractor to City and Schedule A annexed hereto are part of this Agreement.
G
Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
18. ATTORNEYS' FEES: In the event that any party to this Agreement shall bring
an action to enforce the provisions of this Agreement or as a resuit of any default
in the performance of any of the provisions of this Agreement, the prevailing
party in such action shall be entitled to recover all costs and expenses, including
reasonable attorneys' fees, incurred by such party in connection with such action.
19. GOVERNING LAW: This Agreement shall be construed and governed by the
laws of the State of California.
.,�,•
Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
TO THE CITY:
Rachelle Klassen, City Clerk
CITY OF PALM DESERT
73-510 Fred Waring Drive
Palm Desert, CA 92260
TO THE CONTRACTOR:
Mr. Mark Talboys, Chair
PALM DESERT SISTER CITIES FOUNDATION
45-580 Portola Avenue
Palm Desert, CA 92260
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their
respective authorized officers, effective as of November 16, 2006.
CONTRACTOR:
CITY OF PALM DESERT
a Municipal Corporation
Chair
Mr. Mark Talboys
APPROVED AS TO FORM:
Mayor
Print Name
ATTEST:
Rachelle D. Klassen, City Clerk
APPROVED:
David J. Erwin, City Attorney Carlos L. Ortega, City Manager
7
Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
State of California
County of Riverside
��
Date
, before me,
Name and Title of Officer (Eg. "Notary Public")
personally appeared ,
Name(s) of Signer(s)
personally known to me, proved to me on the basis of satisfactory evidence, to be the
person(s) whose name(s) is/are subscribed to the within instrument and acknowledged
to me that he/she/they executed the same in his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.
WITNESS my hand and official seal.
Signature of Notary Public
Place Notary Seal Above
0
Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
SCHEDULE A
SERVICES TO BE PROVIDED BY CONTRACTOR
(Attached and incorporated with Agreement)
All services specified in Contractor's application for funding for Fiscal Year 2006-
2007, dated November 16, 2006, including, but not limited to, those services specified
below on this Schedule, or as described on any attached sheets made a part of
Schedule A:
SEE ATTACHED WHITE PAPER (EXHIBIT A)
The proposed services described herein set forth the services described in the
Application, which is the basic document upon which this Agreement is founded, and
which Application is incorporated herein by reference as Exhibit A, and attached hereto.
SUMS TO BE PROVIDED BY CITY TO CONTRACTOR
In consideration for services rendered, City agrees to provide the sum of
$96,707.02 to Contractor for Fiscal Year 2006-2007.
0
Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
SCHEDULE B
REPORT OF SERVICES RENDERED
AND TO BE RENDERED
(DUE JANUARY 31, 2007)
CONTRACTORS, by its duly authorized official, hereby submits to the CITY OF
PALM DESERT its report on services rendered and to be rendered by Contractor,
including how the funds were expended and the number of Palm Desert residents that
were benefitted, pursuant to that certain "Agreement by Non-Profit Organization to
provide services to the CITY OF PALM DESERT" effective November 16, 2006.
CONTRACTOR certifies that it has maintained its office during the hours
contracted for, and has continuously provided all services contracted for, and assures
the City it will conduct all programs contracted for, as specified below on this Schedule,
or as described on any attached sheets made a part of Schedule B:
Included in the services provided, Contractor has, during the period covered by
this Report, performed the following approximate services during the period July 1, 2006
to December 31, 2006.
This report, herein by reference as Schedule B, shall after being completed be
returned to the City of Palm Desert, no later than January 31, 2007.
The undersigned, the duly authorized official of the Contractor, certifies that the
information provided herein is true and correct.
Name of Organization (Contractor)
Dated:
By:
Signature of Authorized Official
10
Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
SCHEDULE C
REPORT OF SERVICES RENDERED
AND TO BE RENDERED
(DUE APRIL 1, 2007)
CONTRACTOR, by its duly authorized official, hereby submits to the CITY OF
PALM DESERT its report on services rendered and to be rendered by Contractor,
including how the subject funds were expended and the number of Palm Desert
residents that were benefited, pursuant to that certain "Agreement by Non-Profit
Organization to Provide Services to the CITY OF PALM DESERT" effective November
16, 2006.
CONTRACTOR certifies that it has maintained its office during the hours
contracted for, and has continuously provided all services contracted for, and assures
the City it will conduct all programs contracted for.
Included in the services provided, Contractor has, during the period covered by
this Report, performed the following approximate services during the period July 1, 2006
to June 30, 2007.
This report, herein by reference as Schedule C, shall after being completed be
returned to the City of Palm Desert, no later than April 1, 2006, along with your
request for funding for Fiscal Year 2006-2007.
The undersigned, the duly authorized official of the Contractor, certifies that the
information provides herein is true and correct.
Name of Organization (Contractor)
Dated: By:
Signature of Authorized Official
11
Agreement by Non-Profit Organization
to Provide Services to the City of Palm Desert
RECEIPT OF FUNDS
Pursuant to that certain "Agreement by Non-Profit Organization to Provide Services to
the City of Palm Desert," dated , the undersigned, a duly
authorized official of Contractor, does hereby confirm and acknowledge that on the
day of , 2006, the undersigned personally received on behalf of
Contractor, the CITY OF PALM DESERT check, Number , in the amount of
$ , made payable to (Contractor).
DATED:
CONTRACTOR:
(Name of Contractor)
(Signature of authorized official)
(Name of signing authorized official)
12
Exhibit A
�,V�n �� �i�� �'ALM ����Rfi
GiT'r' MANAGER'S OFFIC�
INTEROFFICE MEMORANDUM
To: City Council
From: Carlos L. Ortega, City Manager
Date: May 25, 2006
Subject: Revised White Paper: Sister City Foundation Budget Request
Attached for your review a revise "White Paper" on the Sister City Foundation Budget Request.
This document differs from the original as follows:
1. Staff initiated minor text alterations to the document;
2. Due to an incorrect subtotal, the total Foundation funding request was reduced by
$17,220; and
3. Staff increased the recommended funding level for the Foundation by $1,780.
Should you have any comment or questions concerning this matter, please contact Stephen Y.
Aryan, Assistant to the City Manager. Thank you.
����
Carlos L. Orte
City Manager
cc: Sheila Gilligan, Assistant City Manager for Community Services
��;�`1--� �i�� �'ALM i1���F�`�
CIiY MANAGER'S OFFICE
WHITE PAPER
SUBJE�T: Revised Palm Desert Sister Cities Foundation Funding Requesf
SUBMITTED BY: Stephen Y. Aryan, Assistant to the City Manager
Sheila R. Gifligan, Assistant City Manager, Community Services
DATE: May 25, 2006
ATTACHMENT: Palm Desert Sister Cities Foundation Budget Request
RECOMMENDATION
By Minute Motion:
1. Approve Staff's recommendation for $84,500 in funding for the Palm Desert
Sister Cities Foundation. Although the designation of the Palm Desert Sister
Cities Committee as a 501 (c)(3) will not be final until sometime after the start of
Fiscal Year 2006/2007, for budgeting purposes only, Staff will identify the
Committee as the Palm Desert Sister Cities Foundation.
EXECUTIVE SUMMARY
During the consideration of the Sister Cities budget for fiscal year 2004/2005, the City Council
and the Palm Desert Sister Cities Committee (PDSC) determined that re-organizing the
Committee as a separate 501(c)(3) tax-exempt, non-profit organization, would enhance its
commitment towards creating programs and collaborations that exemplify the spirit of Sister
Cities.
The law firm of Green, de Bortnowsky & Quintanilta assisted the Committee in the 501(c)(3)
application process on a pro bono basis. The first step in applying for non-profit status was the
formation of Articles of {ncorporation, which was recently submitted to the Secretary of State's
Office for review. Upon acceptance of the Articles of Incorporation (anticipated by July 2006),
the Palm Desert Sister Cities Committee can be dissolved and will be considered a non-profit
organization called the Palm Desert Sister Cities Foundation.
The PDSC recentty approved its official Bylaws that de�ne the rights and obligations of the
Foundation's officers, directors, and members. The Bylaws contain the standard procedures for
conducting meetings and making policy. The Foundation is requesting City funding in support of
its programs and administration for $136,660. However, Staff's position is that the Foundation
can implement its identified programs at a cost of $84,500. Although this is a reduction of
approximately 38°l0, Staff maintains that the recommended budget has the necessary resources
for the Foundation to maintain its programs and carry out its goals.
���/IS�ti �'iI�BY� �1����h �=�B��w6" tL=��9��. ����ua�e�„:��r�:Ad�aN ���ra�i�yr� iKec������,
flAay 15, 2�t��
�aye :� �►� �
DISCUSSION
The City of Palm Desert established its Sister Cities Committee on September 24, 1992, As it is
currently structured, the Committee consists of thirteen permanent members and can have ex-
officio members as appropriate. The Committee's objectives are to advise, monitor, and assist
the City Council on the best methods t� promote the exchange of culture, infarma�tion, and
international relations with designated sister cities. Palm Desert currently has two existing
Sister City relationships with the City of Gisborne, New Zealand and the City of Ixtapa-
Zihuatanejo, Mexico.
In an effort to enhance the outreach of this program into the community, the City Council and
Committee decided to re-organize the Sister Cities Committee as a separate 501(c)(3) tax-
exempt, non-proflt organization. However, the City of Palm Desert desires to continue providing
assistance in hosting cultural exchanges and supporting the Committee financially and through
City participation, which will provide a foundation to fabricate the future of the program and
enhance the Committee's efforts to date.
The law �rm of Green, de Bortnowsky & Quintanilla assisted the Committee and Staff in the
501(c)(3) application process. An initial step the Committee undertook was the submittal of
Articles of Incorporation to the Secretary of State. It is anticipated that the Secretary of State
should provide a decision on the articles by July 2006. The next critical path was the
establishment of the Bylaws, which was recently approved. Work will soon commence on
preparing the lengthy 1023 application process for federal tax exemption status. Please note
that this process does not affect the Committee's conversion into a non-profit entity. Once the
Articles of Incorporation are approved, then the Committee can be considered a non-profit entity
that is seeking federal and state tax exemption. Until this time, this Committee will oversee the
current Sister Cities program. Upon approval of the Articles of Incorporation, Staff will prepare a
resolution dissolving the Palm Desert Sister Cities Committee and bring forward a funding
contract between the City of Palm Desert and the newly established Palm Desert Sister Cities
Foundation, for the City Council's consideration.
FISCAL CONSIDERATIONS
As a separate non-profit entity no longer under the City's oversight, Staff recommends that any
funding request by the Palm Desert Sister City Foundation will have to follow the same
procedures required of other non-profits seeking City financial support.
During their annual retreat, the Palm Desert Sister Cities Foundation established a budget that it
asserts will support its programs and desired goals as a non-profit entity. This detailed budget
document is attached as an exhibit to this report for your review. This budget totals $154,160
and includes $61,070 for programs/Foundation expenditures, and $93,090 in administration
costs. The Foundation requests the City provide funding in the amount of $136,660. This
amount accounts for a$17,500 (the projected revenue amount) deduction from the totai budget
request.
�taff doe� riot recoi��mend funding the Foundation iii the amount rec�uested ($136,G60) a� t{i�
administration costs can be handled as recommended by Staff. Staff recommends funding the
programs/Foundation expenditures ($61,070) at the level requested, but readjusted tf�e
administration costs from $93,090 to $40,930, � difference of $52;160.
G.�CiryMgr\Stephen Aryan\Word DatalAgantla Reports�Sister Cdies Committee White Paper-Revised doc
Revised Palm Desert Sister Cities Foundation Funding Request
May 25, 2006
Page 3 of S
Staff recommends a budget be approved for the Palm Desert Sister Cities Foundation in
the amount of �84,500. The Foundation has a reserve account representing their fundraising
efforts over the last three years. This amount and projected fundraising revenues of $17,500 in
FY 06107 will offset the programladministrative costs requested. If the Foundation is funded at
the Staff recommend level, this fundraising revenues account will be dissolved into the City's
General Fund. The newly formed Sister Cities Foundation, although no longer supported by
City Staff, wil! also have a designated Staff liaison to coordinate any City's interaction with this
newly formed nonprofit agency, if necessary. Again, Staff would not be working for Foundation.
This relationship woufd be similar to the City's current interaction with the Palm Desert Historical
Society and Chamber of Commerce.
BUDGET REQUEST SUMMARY
$53,850
$53,850 $0.00
Administration Budget $93,090 $40,930 ($52,160)
*Sub Totai $154,160 �102,000 ($52,160)
Fundraising Revenue ($17,500) ($17,500) $0.00
Total Budget Request $136,660 $84,500 �$52,160)
"Please note that the attached budget document incorrectly subtotals the program budget as $61,070
(actual subtotal is $53,850) and should not have added the $10,000 in Golf Tournament Donations.
(See Exhibit A)
Program Budget
(See Exhibit A)
STAFF'S RECOMMENDED FOUNDATION ADMINISTRATIVE BUDGET
Rent
Utilities
$15,000
$2,700
�
$2, 500
12,000)
Staff recommends the Sister Cities
Foundation conduct its business
f�om the Portola Community Ctr.
This annual cost includes standard
utilities, meeting/office space rent
for one year, and clerical support.
By having their office at the
Portola Community Ctr., certain
annual utility costs were
eliminated. However, staff
increased the phone & ISP costs.
Wages/Salaries
$55,760
($200)
$0.00 ($55,760) Staff does not recommend hiring a
full-time employee at this stage in
the Foundation's existence.
However, costs are allocated for
P/T admin. & professional support.
G'\GtyMgr\Stephen Aryan�Word DataVlgenda Reports\Sister Gties Commdtae Whde Paper-Re�sed.dce
����i���� �'���sa �r��k;� r': �_�d:���� ��,a���:�� ��a����u�����:�K,�°p �ayca��Arye� ��qu�;��
�Aa� ��►, 2ill'1�
�'ag� � �f �i
Professional
Services
Insurances
Capital Purchases
Supplies
Storage
Postage
Licenses/Fees
TOTAL
REQUESTED/
RECOMMENDED
AMOUNTS
,500
$5, 500
$6,050
$2,000
$1,680
$1,770
$130
$93,090
19,000
$8,000
$4,300
$2,000
$0.00
$2,000
$130
$40,930
$16.500 Staff increased this amount hy
$15,500 for half-time (20 hours a
week at $15.00 p/hour) annual
clerical support and added a�i
additional $1,000 for professional
accounting fees.
$2,5�t? In consulting with the City's Risk
Manager, he indicated that
workers compensation insurance
coverage, or similar policy (direct
medical/accident coverage) may
be necessary, as well as
commercial automobile and
renter's policies. Therefore, Staff
increased this line item by $2,500
annually in case such coverage is
necessary.
($1,750) Reduction in costs associated with
computers and software. fncrease
in file cabinet cost.
$0.00 No Chanqe
($1,680) Staff has already paid for annual
rental storage unit costs
separately to July 1, 2007.
$230 Staff recommends increasing the
postage costs.
$0.00 No Chan e
(52,160)
PALM DESERT SISTER CITIES FOUNDATION PROGRAMS (EXHIBIT A�
The following is a brief explanation of the programs found under each Foundation Sub-
Committee that require further explanation (please see attached budget document). These
amaunts total $61,070:
ART, CULTURE, AND EDUCATION SUB-COMMITTEE
excnanges ae�vveen �isporne �iv.�.� ana raim uese�. �
This budget allocation covers artist related costs, includiny
hosted receptions, art materials/supplies, host mileage �
costs, and artist tickets to local activities and meals_ __
G\CiryMgr\Slepnen Aryan\Word Data�Agenda Reports\Sister Gties Commdtee White Paper-RewseU.doc
, j
' �
���i:s�Y:� ��Ir�d ���-��ti-� ��N���n d.-s�di�� � u.1@yti'tl�Y�11�:1(Ji't G�'�.q6tlCietl� ��ql.1�5L
n�ay ��, �c,d�
�'ag� � of �
McCallum AEP
Hosting Receptions
TOTAL
,500
$500
$5,600 �
The McCailum Theatre offers an Aesthetic Education
Program scholarship to the Sister Cities Foundation for
i visiting educators from the two sister cities. This program
enhances the educators' understanding of the world
through involvement with diverse artwork. The requested
budget allocation is for hosted receptions, mileage costs,
and participant tickets to local activities and meals.
� For hosting various sub-committees related functions.
HUMANITARIAN SUB-COMMITTEE
Bombero/Firefighter
° Lifeguards
Wheelchair
Ambulances Donation
DlF Childcare Center
$5,000
$2, 500
$5,000
$2,500
The Bombero Training Program began in the spring of
2004 with a donation of fire vehicles to Ixtapa-Zihuatanejo
by the Cove Commission. Part of this program currently
involves vehicle maintenance, shipment of surplus
equipment, and cross training between Palm Desert and
Zihuatanejo firefighters. This budget aflocation covers
training costs, travel for local firefighters, hosting events,
parts expenditures, and shipping fees.
This program aims to enhance lifeguard response, training,
and continued support of a Jr. Lifeguard Pgm. in Ixtapa-
Zihuatanejo. This allocation covers the costs of
transportation, hosting, equipment, & training sessions.
The Foundation, in association with Palm Desert and Ixtapa
Rotary Clubs, & Ixtapa-Zihua. Sister Cities Committee is
working on a wheelchair program to deliver a container of
250 wheelchairs to Ixtapa-Zihuatanejo from China. The
total cost is $21,000; however, the goal is to raise $10,500
because of a possible matching grant opportunity. The
Foundation requests a$5,000 alfocation & is seeking
fundraising opportunities for the remaining balance.
The Foundation is looking to ship two additional surplus
ambulances to Ixtapa-Zihuatanejo, along with a.
considerable amount of firefighting equipment and supplies. �
The City of Zihuatanejo and Ixtapa-Zihua. Sister Cities will i
pay for the ambulances' shipping costs. This budget ,
allocation covers the costs of equipment/supplies and �
shipping. �
The DIF is an Ixtapa-Zihuatanejo social agency that '
requestecl assistance with various programs. I hey �
, primarily focus on assisting childrei�, th� �Id�rly a��t? '
{ mothers. These programs include special needs, nutrition, !
i dental/vision, and heafthcare. The budget allocation is
� su��ested_for a future program not yet identified.
...__1 _.Y_ , . _�.. . - _ . . . _ .
4 Projects
$1,000
� �
G�Gry�vlgnStephen Aryan\Wor� DztaWgenda Raports\Sisler CiUes Committee Whita Paper-Revised.doc
�:�vi��� �a�r�rd r����� � ;�a���:r �� i�i��� �-y��p��o�.���acyre ��ye��;�enc� �e�q�i��r.
�fiay �5, �bt�b
�'��� fi �f �3
Purchase of an All Terrain Vehicle for assistance with
rescue operation in Ixtapa Zihuatanejo. __ ____.__._ .__�_
Funds for shipping of mobile medical units.
For hosting various sub-committees related functions.
1�������������������������������1����������1������������������1������������
TOUR{SM AND ECONOMIC DEVELOPMENT SUB-COMMITTEE
.. � . �- . .
� •
Industry Expert to IZ $1,500 This provides for industry experts such as representatives
(Airfare x2) of the City's waste hauler to visit Ixtapa-Zihuatanejo and
assist in the creation and promotion of recycling or other
ZIH Airport PD Sign
Art of Food & Wine
Golf Tournament
Er��ployee Exchange
�
I
$750
$2, 500
$5,000
$1,OOG
programs.
The Foundation has suggested to its colleagues in Ixtapa-
Zihuatanejo that a sign, acknowledging the Sister City
re{ationship, be pfaced in the arrivals area at the
Zihuatanejo Airport, to promote the program.
J.W. Marriott's Desert Springs Resort is producing this
event. The focus of this effort is to showcase the art of
food by hosting several well-known chefs, who will provide
program experiences for attendees. Wine is the second
feature of this event, and wine companies from across the
country will be involved, competing for the Best of Palm
Desert Wine Glass. Last, but not least, the City's Art In
Public Places Program becomes a greater draw to Palm
Desert each year. People are interested in the cultural
aspects of our community, so the art program will play a
part in this event. At Council's direction, a chef from Ixtapa-
Zihuatanejo was included, and the money budgeted will
assist that individual in coming to Palm Desert and
participatin� in this event.
The Tee'd 2 Read Golf Tournament is produced by the
Sister Cities Foundation and held annually. This year both
Gisbome and Ixtapa-Zihuatanejo are represented. The
tournament produces approximately $10,000 in revenue
per year for funding of the Sister Cities Foundation, which
donates it to local and international schools within Palm
Desert's Sister Cities.
The City has benefted from an employee exchange '
�,rogram with participants from c�isborr�e. I�i acidition, �ui�
employees have gone to Gisborne to work with them and �
share our ideas and culture. Money is budgeted iu �
__ _continue this^program in the future.
G�CiryA4qAStaphen Ary�n�Word Data�.4genda Raports\Sisler Cit�es Committee Whde Papar-Rawsed.tloc
� Mobile Medical Unit ' $500
� Hosting Receptions � $500
� TOTAL � 18,000
��vi��z� �'�Yrr� �=a�•�.�;� �; �����fi � :�'����`> ��rN�9N`i���I$!('��6 ��9f`��f!'!CJ ���}@.9�',�,Y�
li�alj/ �`'JJ, �llrl�i
�'age �1 �if �C
Trade Industry Group
From Gisborne
Hosting Receptions
Group Tour to IZ
TOTAL
Website Development
Relationship Building
SC Visitors Genter
Display
Golf Toumament
Promotion
Hosting Family
Groups/Individuals
. Golf Cart Parade
� $2,000
�$250
$15,000 '
$500
$3,000
$2,000
$2,000
$2,000
i
i
�
�� - - - -� -- -- --
The Mayor of Gisborne is very pro-economic development
and looks at our Sister Cities relationship as an opportunity
to not only expand the goals of the Foundation k,ut fo fund
economic development in both countries. The planned visit
by the Mayor of Gisborne and a delegation representing
Gisborne industry will occur in November 2006. This
contribution is intended for hospitality and/or presentations
at meetin�s.
For hosting various sub-committees reiated functions.
Funds related to a aroup tour of Ixtaoa-Zihuataneio.
The Sister Cities Foundation does have a website, which
was initially created for the Tee'd 2 Read Golf Tournament.
The site needs to be expanded and kept current as to
Sister Cities activities/programs. Money is budgeted
accordingly.
This is money budgeted for opportunities the Foundation
may have associated with developing media contacts.
There is space available at the Visitor Center for a nice,
professionally produced display of the Sister Cities
program. This display is being created, and money is
budgeted accordingly. This display will also highlight all of
the great products that come from our New Zealand Sister
City, when the Mayor visits later this year.
This request is tied to the first item, the Tee'd 2 Read Golf
Tournament, and promotion required to make the event
successful. This amount is in addition to the requested
money for the Toumament itself.
The Foundation has had several visitors from both Sister ;
Cities, and it was decided that a specific line item should be �
created for dealing with expenses associated with hosting
these visitors. �
The Sister Cities Foundation is invited to participate in the i
Golf Cart Parade to showcase its global relationships. ;
Ixtapa-Zihuatanejo has been part of this event, and it has �
been an educational tool for our community, who may not `
f<now what a Sister City is, let alone who we are linked witf�.
The money budgeted would be used for decorating the
carts, promotion, and incidental expenses associated with ;
tl�� event.
G�Citytvlgr\Stephan AryanUNord DataWgenda Rapals\S�;ter Gl�es Canmdtee White P2por-Ravisad.doc
PUBLIC RELATIONS SUB-COMMITTEE
���is�:c9 �'�I�e� p ��:�;�F�-�; ��d�x�.E u:A���� �'���@9��3�M�tR�'ib-d i�`P_9��t�111C,� ��r.�19��'i�
ru��y ��� 2�0�
�age $ ot �t
Hosting Receptions_ w__ $2,500 �
TOTAL $15,000 �
For hostinq various sub-committees related functions.
HISTORICAL SUB-COMMITTEE
Archive Maintenance Costs
TOTAL
$250
FOUNDATION MISCELLANEOUS EXPENDITURES
� Sister Cities International Conference
� Sister Cities International Membership
� Sister Cities SoCal Conference
Sister Cities SoCal Membership
• US/Mexico Sister Cities Conference
� US/Mexico Sister Cities Membership
� Retreat
• Gifts for Visitors/Recognition
• Hosting Receptions
TOTAL �
$3500
$320
$200
$100
$400
$200
$500
$1,000
$1,000
$7,220
While the advancement of the Sister Cities Committee into a non-profit organization was a very
labor-intensive process, as a 501(c)(3) non-profit organization, the Palm Desert Sister Cities
Foundation can continue its tradition of excellence in fostering global cultural awareness, while
still maintaining a collaborative effort with the City of Palm Desert in attaining its goals for a
vibrant and productive program.
Submitted by:
,,
, ;
j, � ;
, �
���.�.�'� t
�heila R. Gilli ar�
9
�Assistant City Manager,
Services
, ,� ��
� �
�
Stephen Y. Aryan
Assistant to the Cit anager
,
G�GryP.agr\Siephen Aryan\Word Dala\Agenda Reports\Sster GUes Commdlee White Papzr-Rev�sed doc
_i�_� i=ilk�t_j,_:i
'��. �: �'_�'
SUMMARY PAGE
P�1L.A/! C1��EF2`� 51��1°�� �>IT9�� F��f�IC11ATI�R!
BUDGET � `�` Actuals unavailable
2006 / 206�
2006/07 2005/06 2004/05
Budget Actual Budget Actual Budget Actual
EXPENDITURE
COMMITTEE - SUB TOTAL 7220
SUB COMMITTEES
ACE 5600
HUM 18000
TED 15000
PRE 15000
FUN 0
HIS 250
PROGRAM SUB TOTAL 61070
DESIGNATED DONATIONS 10000
ADMINISTRATION
Rent 15000
Utilities 2700
Wages/Salaries 55760
Insurance 5500
Capital Purchases 6050
Supplies 2000
5torage 1680
Postage 1770
Professional Services 2500
License/Fees 130
OFFICE SUB TOTAL 93090
TOTAL EXPENDITURE 171380
REYENUE
Golf Tournament 15000
Annual Raffie 2500
Interest - Money Mkt Acct 0
TOTAL REVENUE 17500
P/L. �153880
RESERVE ACCOUNT 24896
Ei��ia��i° �9s�''l�C�ii�� a}r �mJ�.9f��N�?N�
(excludes appropriations)
0 7070 2980 11200 3775
0 7850 6100 1100
0 13000 5000 2000
0 10750 15500 5200
0 7750 0 300
0
0
0 46420 2980 37800 12375
10000
0 0 0 0 0
0 63490 5960 49000 16150
12000 10000 12000
0 12000 0 10000 12000
0 -51490 -5960 -39000 -4150
`�'�4�4 �
Page 1 ot S
�����: �i_��_i�l�:�.
�':/; : /i 1�=:
Gommittee
SCI Conference
SCI Membership
SCSoCaI Conference
SCSoCaI Membership
SC US/Mex Conference
SC US/Mex Membership
Retreat
Misc Shipping
Misc Supplies
Gifts for Visitors/Recognition
Golf Cart Parade
Hosting Receptions
Sub Total
Sub Committees
ACE
Artist in Residence
McCallum AEP
Artwork Purchase
Exhibit Supplies
Student Exchange
Hosting Receptions
Sub Total
HUM
Bombero / Firefighters
Lifeguards
Wheelchair
Ambulance
DIF Childcare Center Projects
ATV Patrol vehicle
Mobile Medical Unit (shipping)
Scholarship / Visit by student
Donation Project
Shipping of donations
Shipping / Customs
PartsNehicle Maintenance
Hosting Receptions
Sub Total
�'O�i6i�li `�nU5/06 �d04/�1a
�3u�1ge� Actual i�udyst Actual Budg�efi Actual
3500
320
200
100
400
200
500
0
0
1000
0
1000
7220
1600
3500
0
0
0
500
5600
5000
2500
5000
2500
1Q00
1000
500
0
0
0
0
0
500
18000
3500 2800 3500 3�00
32U 400 32U
200 200
400 180 400
150 200
500 500
500 1000
500 2000
500 1000
0 1000
500 1000 55
0 7070 2980 11200 3775
1600 1600
3500 3000 1100
1000 1000
250 500
1000
500
0 7850 0 6100 1100
5000 4136
2000 2000
5000 1000
'1000
1000
3000
1Q00
1Q00 775
U 13000 775 5000 200A
Pag� 2 of 5
_:i: �;uri�t,�
;; �-, , ���,:;
2�'�06/b � 2005/06 �004/05
P3udge�t Actual f3udget Actual Budgei Actual
TED
Golf Tournament 5000
Group Tour to IZ 250
Industry Expert to IZ x 2(airfare) 1500
ZIH Airport PD Siyn 750
Art of Food & Wine 2500
Community Day f_1
Employee Exchange 1000
Trade Industry Group ex Gisborne 2000
Product Showcase 0
Hosting Receptions 2000
Sub Total 15000
PRE
Database Management 0
Website Development 2000
Relationship Building 500
SC Visitors Center Display 3000
SC Portable Display 0
Newsletter 1000
Press / Info Kit 0
Brochure/Reprint 0
Promotional Items 0
Golf Tournament Promotion 2000
Hosting Fam Grps/Individuals 2000
Golf Cart Parade 2000
Hosting Receptions 2500
Archive Maintenance
Sub Total 15000
FUN
Sub Total 0
HIS
Archive Maintenance 250
Sub Total 250
DESIGNATED DONATIONS
Golf Totirnament Proceeds 10000
2500
250
500
500
0
5000
0
0
1000
1000
0 10750
0
0
500
0
500
1000
0
0
1000
0
2000
1000
1500
250
0 7750
0
0
0 0
10000
5000 500U
?50
5000
750
4500 200
0 15500 5200
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
c��
300
2006/07 2005/06 2004/05
�eaef�a� ����ue.��l f�udgr�i ���ual �3�ae➢g8� f�����A�6
AdMINISTRATION
Page 3 ��f F
::i� f"_�Llii�j.:;,
y"�/+Ic,
�terit '1500b U Q (r �1 �i
Utilities 270C� t1 0 0 r:� to
Phone '1000
ISP Subscription 520
Electricity 1000
Gas 120
Water 60
Wages/Salaries 55760 0 0 0 0 0
Staff 1 42000
Fica 3360
Fringe/SUTA/FUTA 20% 8400
Mileage/T8�E/Ph 2000
Insurances 5500 0 0 0 0 0
Liability 1200
Directors Indeminity / Liabiliry 1500
Worker's Comp 2200
Volunteer 600
Capital Purchases 6050 0 0 0 0 0
PhonelAnswer Machine 100
Computer 3000
Software 1000
Printer/Fax/Copier 500
File Cabinet 250
Furniture 1200
Supplies 2000 0 500 0 0 0
Ink Cartridges 1000
Stationery 500 500
Misc 500
Storage 1680
Postage 1770
Professional Services 2500
Accounting 1000
Legaf 1500
License/Fees 130
State/Fed Filings 100
Business 30
Sub Total 93090 0 500 a 0 0
1
� �LlF_� N ���Ib'!1"f1@�Ll6�' �l?�JQE�u;'!
Page ti< <�f 5
'..t_ �;ll�li��i
,/" i'/t :'-;
,�r�:E 1-1ri, ! :�dture &. �d��c:ation
HUM Humai�itarian
TED Tourism & Econoinic Development
PP.E Public Relations F� Prornotion
FUf� Fundraising
HIS Historical
Page � of 5
?..93f5f��
State of California
Secretary of State
�G� �F TtiF
O ;� �
N�= ,.. �Q
�'9,�.�� O�c
��
I, BRUCE McPHERSON, Secretary of State of the State of
California, hereby certify:
-�
That the attached transcript of � page(s} has been compared
with the record on file in this office, of which it purports to be a copy, and
that it is fu{f, true and correct.
IN WITNESS WHEREOF, I execute this
certificate and affix the Great Seal of the
State of California this day of
OCT 2 0 �06
_.__
` � �
/ �� '
BRUCE McPHERSON
Secretary of State
� �� ,���
. ,� .
e.�,y . . , .
Sec/State Form CE-107 (REV 03/31/05) �= osP o� sazon
29315��3
!����F. C �� 9C.��..".: tl.7�� I`:S�tl`9P.R��F_�!^:��,��.���9
�NDidR5ED retarFy o�"E�
of the State of Ca1iiornia
�f:� � � 20(1�
The name of this corporation is Palm Desert Sister Cities Foundation.
I]
A. This corporation is a nonprofit PUBLIC BENEFIT CORPORATION and is not
organized for the private gain of any person. It is organized under the Nonprofit
Public Benefit Corporation Law for
( ) public purposes.
or ( ) charitable purposes.
or ( X) public and charitable purposes.
B. The specific purpose of this corporation is to advance the Sister Cities International
qrinciples of qlobal cooperation and international qoodwill throuqh the use of
communitv resources and implementation of proqrams and exchanqes that qromote
culture and economic development to enrich the citizenry of Palm Desert and her
sister cities.
�
The name and address in the State of California of this corporation's initial agent for
service of process is:
Name
Address
Mr. Mark Talbovs
73-510 Fred Warinq Drive
City: Palm Desert State: CALIFORNIA
IV
Zip: 92260
The names and addresses of the persons who are appointed to act as the initial
directors of the corporation are:
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�l. Maryai�ei'S ���isr..c��,�l � .i��►n���:t��
47-�535 Hwy. 1��
Palm Desert, CA �2�6ia
Mr. Rolf Hoehn
Marketing Solutions
�roup
110 Chelsea Circle
Palm Desert, CA 92260
Mr. John Marman
72-750 Somera Road
Palm Desert, CA 92260
Ms. Nancy Jo Mclntosh
73-401 Terraza Drive
Palm Desert, CA 9226�
Ms. Rosemary Ortega Mr. Mark Talboys Mr. Frank Villar
40-160 Nolina Court 73-319 Broken Arrow Trail 76-807 Scirocco Road
Palm Desert, CA 92260 Palm Desert, CA 92260 Palm Desert, CA 92211
Mr. Gary G. Walker Ms. Jean A. Whitney
40-820 Glenmore Drive 73-135 Tumbleweed Lane
Palm Desert, CA 92260 Palm Desert, CA 92260
V
A. This corporation is organized and operated exclusively for charitable purposes
within the meaning of Section 501(c)(3), Internal Revenue Code.
B. No substantial part of the activities of this corporation shall consist of carrying on
propaganda, or otherwise attempting to influence legislation, and the corporation
shall not participate or intervene in any political campaign (including the publishing
or distribution of statements) on behalf of any candidate for public office.
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The property of this corporation is irrevocably dedicated to charitable purposes and no
part of the net income or assets of this corporation shall ever inure to the benefit of any
director, officer or member thereof or to the benefit of any private person. Upon the
dissolution or winding up of the corporation, its assets remaining after payment, or
provision for payment, of all debts and liabilities of this corporation shall be distributed to a
nonprofit fund, foundation or corporation which is organized and operated exclusively for
charitable purposes and which has established its tax exempt status under Section
501(c)(3), Internal Revenue Code.
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Bill y ris, Director
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Roff Hoehn, Director
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ary O��ga, Di ctor
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ry G alker, Di�ector
C/We� declare that we are the
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Mark Talboys, Dir o ;%
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`�_�l,dar�A. Whitney, Director
persons who executed the foregoing Articles of
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Patr cia M. Bannon, Director
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DESCRiPTION
Arts, Culfure & EducoNon
SISTER CITIES
FY 2006/07 BUDGET TRACKING
BUDGET EXPEDITURES BALANCE PERCENTAGE �
AMOUNT YTD REMAINING REMAINING
Artist in Residence � $1,600.00� $0.001 $1,600.00 i 100`Y
-� ----�- -- - �--- - ---
McCallum Aesihetic Education Program $3,500.00 $O.00r $3,500.00 100�
Hosting Reception �� $,500,pp � - --- - -
� I $O.00rt $500.00 � 1003�
Tourism & Economlc Developmenf
Art of Food & Wine I $2,Spp,pp I '
Sister Cities Golf Tournament T , $0.00� $2,500.00 I 100%
� ----- - -- - -
$5 000.00 $0.001 $5,000.00� l 00�0
- - � ----
Hosting of Visitors $2,OOp.�_ _ $O.OT $2,000.00� 100�
Group Tour to Ixtapa-Zihuatenejo $250.00 $0.00� $250.00 r 100�0
Trade Industry Group from Gisborne � $2,000.00 $0.00 $2,000.00� 100Yo
Banners: Ixtapa-Zihuatanejo Airport t $750.00 � -� �
- �--- �---- $0_00�-- $�50_00 1004'0
Industr Ex eri: Airfare to Ixta a-Zihuatane'o �
__ Y_ P _ P J _ � __ $1,500.001 _ _ $0.00 $1,500.00� --100`Yo_ _
Employee Exchange � $1,000.00� $0.00 $1,000.00 � 100%
HumanJtarion/Fufure Progroms
Wheelchair Project ___ _ I $S,ppp,pp� $0.00� $5,000.00 ' 100�0
Emer enc Vehicles Pro ram �� -+ �
9 Y 9 _. _� $2.500.00� _ $0.001 $2,500.00 1003�
DIF Childcare Center Projects__ _�_ $1,000.00L___ $0.00� $1,000.00 100�
ATV Patrol Vehicle $1,000.00� $0.00� $1,000.00� 10090
Life uard Trainin Pro ram: Zihuatane'o � -� t-- -
- 9-- - 9 -9 --- 1- -- -J_ $2,500.001 $0.00 $2,500.00 . 1003'0
Mobile Medical Unit Shipping I $500.001 $0.00 -�
_ I $500.00 100%
-�---- -�------
Hosting Receptions T $500.00 $0.001 $500.00 100%
Bombero/Firefighter Training & Related Expenses � $5,000 00� $130.24T-$4,869.76 97�
Public RelaHons B PromoHon �
Golf Carf Parade j $2,Q00.001 $0.00� $2,000.00 � 100�
Newsletter - --- -- ------- ---- � - �-----I--- ---
$1 A00� ---$O.OQ 1 _ $1,000.00 j _ 100�- -
Updating of SC Display I $3,000.00 $0.00� $3,000.00 I �pp%
GoifTournament Promotion � J$2,000.00� $0.001 $2,000.00 � 100�
Relationship Building w/Media Contacis -{ $500.00
$O.00I--$500.00� 100�
Website Development � $2 000. 0 $0.001 $2,000.00 � 100%
--I---= �-- - �-------
Reception Hosting ---- -- _� $2,500.00�_ _ $0.0�-_ $2.500.00 100�'0
-+------�- --- -
Family Groups 8. Individual Hosting � $2,ppp.ppl $p.pp� $2,ppp.pp � �ppyo
Miscellaneous
Conferences: International � $3,500.00� $436.721 $3,063.28 � 88`Yo
Conferences Southern California -�- $200.00 $0 00 $200.00 100�
Conferences: U.S./Mexico � __L $d00.0p� $p,pp� � -- - -
$400.00 100�
---�- - -- -
Dues: Sister Cities Southern California l $100•001 $O.00f $100.00 100�
Dues: Sister Cities International I $320.00r $0.00 ,
_ $320.00 100%
Dues: U.S./Mexico Sister Cities � � -
$200.00 $O.00I $200.00 I 100`Yo
Receptions ! $1,000.00� $O.00I
Gifts for Visitors / Recognition $1,000.00 ��"��'��-- �00`Y _
_ 1 _ � $0.00 � _ $1,000.00 I 100�
Retreat � $500.00 $000 $500.� 100�
Archive Maintenance Costs j $250.00 $0.00� -+
. . . . I I $250.00 i 100`�0
PROGRAM TOTALS
$61,070.00 $566.9b $60,503.04 99�
� �
Adminishatfon
Rent I $3,000.001 $0.00� $3,000.001 100Y
Utilities � $2,500.00� $0.00 $2,500.00 100�'0
Professional Services � $19,000.00� $0.00� $19,000.00 100�0
Insurances T $S,OOO.00t $0.00� $8,000.00 100�'0
Capital Purchases - �- --�- � - -
____ _I $4,300.00� _ $0.001 $4,300.00I _ 100� _
S�pplies -�-- $2,000.001 -- $0.00� $2,000.00� 100�
Postage ------ - I $2,000.00�_ $31.10~ $1,968.90�- 98�
Licenses / Fees I $130.00� $0.00�- $130.00� 100�'0
ADMINISTRATION TOTAL $40,930.00 $31.10 $40,848.40
I I ' I
FY 2006-2007 TOTAL �$102,000.00� � I
Proposed Fundraisinfl Ravenue -t ($17,500.00� - j �
Total Budyet Request (Total minus Revenue) �$84,500.00� � I ---
Plus 2006 Golf Tournament Net Profit �$12,805.06 � -�- -�