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Home My WebLink AboutC24306A Amendment 2011 Palm Desert Athena Scholarship Award Agreement Between City and California State University of San Bernardino PhilanthropicDAR CITY OF PALM DESERT SPECIAL PROGRAMS DEPARTMENT STAFF REPORT REQUEST: REQUEST FOR APPROVAL OF AMENDED 2011 PALM DESERT ATHENA SCHOLARSHIP AWARD AGREEMENT BETWEEN THE CITY OF PALM DESERT AND CSUSB PHILANTHROPIC FOUNDATION (Contract No. C24306A) SUBMITTED BY: Frankie Riddle, Director of Special Programs DATE: August 25, 2011 CONTENTS: Subject Agreement Approved Staff Report dated June 23, 2011 Email from Michael Singer at CSUSB dated July 27, 2011 Recommendation By Minute Motion: 1) Approve an amended agreement between the City of Palm Desert and CSUSB Philanthropic Foundation in the amount of $3,675.00 to establish the 2011 Palm Desert ATHENA Scholarship Fund (Contract No. C24306A); 2) authorize the City Manager to sign said agreement on behalf of the City of Palm Desert. Background At its regular meeting of June 23, 2011, the Palm Desert City Council approved an agreement with the Foundation for California State University, San Bernardino (a non-profit 501(c)3 corporation) to establish the 2011 Palm Desert ATHENA Scholarship Fund. However, once the contracts were forwarded to CSUSB for signature, staff was advised that the CSUSB Foundation had split into two entities, and the Agreement needed to be amended to reflect the change to CSUSB Philanthropic Foundation. Staff has received email notification that the new Foundation has been approved by the IRS as a 501(c)3 organization and that the temporary Tax ID# assigned to the Foundation by the IRS on May 19, 2011, has become permanent. A copy of the IRS determination letter will be forwarded to the City as soon as it is received by CSUSB. All other terms of the Agreement remain the same. Staff recommends that the City Council approve the subject agreement with CSUSB Philanthropic Foundation to establish the 2011 Palm Desert ATHENA Scholarship Fund at CSUSB — Palm Desert Campus. Staff Report Amended 2011 Palm Desert ATHENA Scholarship Award Agreement (Contract No. C24306A) August 25, 2011 Page 2 of 2 Fiscal Analysis Approval of the subject agreement will have no fiscal impact, as the $3,500.00 scholarship is completely funded by Burrtec Waste and Recycling Services, and the 5% administrative fee charged by CSUSB ($175.00) is paid for by the income generated from the luncheon. Submitted by: Frankie Riddle---, Director of Special Programs Approval: aul S. Gibson Director of Finance CITY COT TNCIL ACTION APPROVED DENIFT) RECEIVED OTIIF.R 1 M. Wohlmuth Manager MEETING DATE ( AYES: NOES: ABSENT: �tm ABSTAIN: VERIFIED BY: IY� Original on File with City Clerk's Office Contract No. C24306A 2011 PALM DESERT ATHENA SCHOLARSHIP AGREEMENT The City of Palm Desert does hereby contribute to the CSUSB Philanthropic Foundation (the Foundation) the amount of $3,675.00 to establish the Palm Desert ATHENA Scholarship on October 26, 2011. RECITALS Whereas, the City of Palm Desert desires to promote higher education for the students of California State University, San Bernardino (CSUSB); and Whereas, the City of Palm Desert recognizes the importance of universities and the role they play in providing higher education for individuals; and Whereas, the Foundation, a non-profit 501(c) 3 corporation, has been formed to assist CSUSB in conducting its mission of providing higher education services; and Whereas, the City of Palm Desert wishes to provide funding to the Foundation for the purpose of providing scholarship funds for CSUSB students. Now, therefore, it is agreed as follows: This scholarship is to provide funds to help meet the cost of education — fees, books, expenses, room and board — for students who meet the following scholarship criteria: Student enrolled at the California State University San Bernardino Minimum G.P.A. of 3.0 The City of Palm Desert understands that this scholarship will be closed out once all of the funds are expended through awarding of scholarships. All funds contributed to CSUSB for scholarships are administered through the Foundation. A 5% administrative overhead fee is charged on all gifts administered by the Foundation at the time of deposit. 2011 Palm Desert ATHENA Scholarship Agreement Contract No. C24306A Expendable scholarships are publicized campus -wide beginning in January of each year. Applications are reviewed by the Palm Desert ATHENA Committee and administered by the CSUSB Financial Aid Office. If the terms of the agreement cannot be met for any reason, the Foundation, on behalf of CSUSB, reserves the right to make the necessary changes so that the monies can be awarded. The Foundation, on behalf of CSUSB, reserves the right to make the final decision in awarding scholarships. The Foundation will advise CSUSB to include this gift commitment in any appropriate internal reports and fundraising materials that list donors, unless the donor specifically requests anonymity. The Scholarship shall be named as follows: Burrtec Waste and Recycling Services Scholarship The City of Palm Desert hereby accepts these guidelines for the establishment of the Palm Desert ATHENA Scholarship. City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 By: John M. Wohlmuth, City Manager Date: Approved as to form: David J. Erwin, City Attorney CSUSB Philanthropic Foundation By: Date: Signature Larry Sharp, Executive Director 2 XC-1 CITY OF PALM DESERT SPECIAL PROGRAMS DEPARTMENT STAFF REPORT REQUEST: REQUEST FOR APPROVAL OF 2011 PALM DESERT ATHENA SCHOLARSHIP AWARD AGREEMENT BETWEEN THE CITY OF PALM DESERT AND CALIFORNIA STATE UNIVERSITY, SAN BERNARDINO (Contract No. C24306) SUBMITTED BY: Frankie Riddle, Director of Special Programs DATE: June 23, 2011 CONTENTS: Subject Agreement Recommendation By Minute Motion: 1) Approve an agreement between the City of Palm Desert and Califomia State University, San Bernardino, to establish the 2011 Palm Desert ATHENA Scholarship Fund; 2) authorize the City Manager to sign said agreement on behalf of the City of Palm Desert. Executive Summary For the past nine years, the City of Palm Desert has served as the sponsor of the Palm Desert ATHENA Awards, which includes the granting of scholarships to deserving students enrolled at Califomia State University, San Bernardino — Palm Desert Campus (CSUSB). Background The ATHENA Foundation is an international organization that supports, develops, and honors women leaders by inspiring them to achieve their full potential and create a balance in leadership worldwide. Nine years ago, the City of Palm Desert assumed responsibility for administering this program in the local community, which focuses on the personal traits of strong, successful leaders who capture the spirit and collaborative leadership style often exemplified by women leaders, while also recognizing the importance of traits such as courageous ads and fierce advocacy in the pursuit of excellence. The ATHENA Foundation gives local sponsors the latitude to organize their programs in the manner which best suits specific communities. When the City assumed the sponsorship role for the Palm Desert ATHENA Awards, it was determined that a scholarship component would be attached to the annual recognition ceremony. The manner in which the awards had been administered in the past required that recipients pay income tax on the scholarships, as the City simply made them payable directly to recipients. In order for CSUSB to effectively administer this award in a manner that meets the Staff Report 2011 Palm Desert ATHENA Scholarship Award Agreement (Contract No. C24306) June 23, 2011 Page 2 of 2 criteria of all others associated with public institutions in the State of California, the attached agreement is necessary. This agreement will allow the City of Palm Desert to fund scholarships through CSUSB without becoming involved in the issuing of year-end statements to recipients and reporting these awards to the Internal Revenue Service for taxation purposes. Although the original agreement was approved by the City Council in 2005, it provided that the scholarship would be closed out once all of the funds were expended through awarding of scholarships; therefore, a new agreement must be signed each year. For each of the past several years, Burrtec Waste and Recycling Services (formerly Waste Management of the Desert) has generously donated funds to be presented to one deserving student at CSUSB — Palm Desert Campus. Burrtec has agreed to fund the 2011 scholarship in the amount of $3,500, which will be named for that organization. Staff recommends that the City Council approve the subject agreement, which will establish the 2011 Palm Desert ATHENA Scholarship Fund at CSUSB — Palm Desert Campus. Fiscal Analysis Approval of the subject agreement will have no fiscal impact, as the scholarship itself is completely funded by Burrtec Waste and Recycling Services, and the 5% administrative fee charged by CSUSB ($175.00) is paid for by the income generated from the luncheon. Submitted by: Frankie Rk Director of Special Programs Approval: 'Pau Gibson Director of Finance CITY COUNCILACTION APPROVED-- ✓ DENI(•'.1) RECEIVED 0714I:,It. MEETING DATE - ! i M. Wohlmuth AYES: NOES: -N obi'. Manager n5°� ABSENT; tianr ABSTAIN: ti ')nC- VERIFIED BY:—d WOW[ on File with City Clerk's ffice LaCross, Mary From: Michael Singer [msinger@csusb.edu] Sent: Wednesday, July 27, 2011 8:18 AM To: LaCross, Mary Cc: Cathy Koob Subject: RE: change to Annual Athena Scholarship Attachments: PHL W-9.pdf; PHL IRS letter.pdf Hi Mary, I just got word back from our Advancement Services dept letting me know that the new temporary Tax ID # has become permanent, but we won't be receiving the determination letter for at least a few more weeks. They stated that: "While an organization's Form 1023 is waiting for approval from the IRS, the organization may operate as a tax-exempt organization. Although donors have no assurance that contributions are tax-deductible for federal income tax purposes until the application is approved, contributions made while an application is pending would qualify if the application is approved." We know the new Philanthropic Foundation has been approved as a 501(c)(3), we're just waiting for the new determination letter to be sent to us. I will be out of town from August 4-14, so I wanted to get this handled beforehand. If we don't receive it before August 25, please go with what I've attached. If we receive it before then, I'll be sure to email it to you right away. Thank you! G Public Affairs Cal State San Bernardino Palm Desert Campus (760) 341-2883, ext. 78107 Fax (909) 537-8180 http://pdc.csusb.edu *The campus is closed every Friday throughout the summer*