HomeMy WebLinkAboutAgenda Report - April 16, 2014 C-08AGENDA ITEM C 00W
CITY OF LODI
COUNCIL COMMUNICATION
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AGENDA TITLE: Adopt Resolution Authorizing the City Manager to Execute Standard Agreements
and Any Necessary Related Documents with Lodi Community Foundation for
Parks and Recreation Expendable and Endowment Funds
MEETING DATE: April 16, 2014
PREPARED BY: Parks, Recreation and Cultural Services Director
RECOMMENDED ACTION: Adopt a resolution authorizing the City Manager to execute standard
agreements and any necessary related documents with Lodi
Community Foundation for Parks and Recreation expendable and
endowment funds.
BACKGROUND INFORMATION: The increasing demand for park amenities and recreation programs,
coupled with rising operating and capital costs, make it a challenge
for the Parks, Recreation and Cultural Services Department (PRCS)
to maintain current service levels. As a special revenue fund, PRCS recognizes the need to find
additional sources of funds that cannot be obtained solely through fees and the annual General Fund
transfer.
Foundations serving Hutchins Street Square, the Lodi Public Library and Police Department have raised
and spent significant sums on various facility improvements and are valued City partners. Although the
PRCS Department does receive donations, grants and sponsorships on occasion, there is no organized
effort or method for the public to make tax-deductible donations to the Department to supplement
ongoing operating and capital costs. Staff has explored creating an independent 501 (c)(3) foundation to
assist in this regard, but the proposed establishment of expendable and endowment funds through the
Lodi Community Foundation (LCF) represents the simplest and lowest -cost method of accomplishing
this.
The Lodi Community Foundation, established in 2005, operates as an affiliate of the Sacramento
Regional Community Foundation, which has more than $100 million under its control. The LCF currently
has 18 funds dedicated for specific purposes, including the Save the Grape Bowl Fund and the Hutchins
Street Square Foundation Endowment. Donations to a PRCS fund would be included with the
Sacramento Foundation's investment portfolio, and the Foundation would be responsible for tax filings,
record-keeping and services such as thank -you letters to donors. Annual fees are approximately 1.5
percent of assets.
Donations to the expendable fund could be used to supplement the Department's current needs, such as
park repairs and deferred maintenance; special community -wide activities, such as musical performances
in parks and other free events; and specific projects, such as a targeted park project. The head of the
Save the Grape Bowl fund approves moving his fund to a proposed Parks and Recreation expendable
fund as a designated sub -fund.
An endowment would be of little benefit in the short-term, as donations could not be withdrawn for
Department needs. Over the long term, however, earnings from principle amounts would provide a
source of funds for parks and recreation needs. LCF representatives have said an endowment is more
likely to attract large donations such as bequests, as contributors have the assurance their funds will
APPROVED: )� � ) I I
Sfev'L�wabauer, Intedr6 City Manager
Adopt Resolution Authorizing the City Manager to Execute Standard Agreements and Any Necessaly Related Documents with Lodi
Community Foundation for Parks and Recreation Expendable and Endowment Funds
April 16, 2014
Page 2
provide a long-term benefit. Similarly to the Save the Grape Bowl Fund, the LCF favors shifting the LCF's
All -Veterans Plaza fund from a stand-alone fund to one within the proposed Parks and Recreation
endowment fund for easier management, as the organization that established and provided oversight to
the Plaza endowment fund dissolved in 2008. Earnings from the All -Veterans Plaza endowment fund are
available to the City to offset the cost of repairs to the plaza's features.
The Lodi Community Foundation requires an initial contribution of $5,000 to start a new fund. On April 1,
2014, the Recreation Commission voted unanimously (4-0) to divide the full amount ($13,589.84) held in
a Recreation Commission trust account as seed money for expendable and endowment funds, resulting
in $6,794.92 for each fund. The trust funds have been held by the City for Recreation Commission use
for decades and staff is unable to determine the source or intended use of the funds.
Following creation of the funds, the PRCS Director, the Park Superintendent and the Recreation
Superintendent would have the authority to request fund proceeds following approval from the Recreation
Commission, which would serve as the advisory board for expenditures of unrestricted funds. In some
cases, City Council approval would be needed if the amount exceeds the City Manager's signature
authority (currently $20,000).
The attached resolution gives the City Manager the authority to execute standard agreements and any
necessary related documents with the Lodi Community Foundation to create expendable and endowment
funds, authorizes the use of the Recreation Commission trust funds to establish the accounts, names the
Recreation Commission as the advisory board for expenditures up to the City Manager's authority, and
allows for the authorized representatives of the Save the Grape Bowl and All -Veterans Plaza funds to
place their accounts within the appropriate Parks and Recreation fund.
FISCAL IMPACT: Taking this step could lead to additional funds available for park
maintenance, repairs, capital projects and recreational opportunities for the
community.
FUNDING AVAILABLE: Not applicable.
jeO dl
P6rM(76(ecreation and Cultural Services Director
JHAI
Attachment: Resolution
RESOLUTION NO. 2014-56
A RESOLUTION OF THE LODI CITY COUNCIL
AUTHORIZING THE CITY MANAGER TO EXECUTE
AGREEMENTS WITH LODI COMMUNITY FOUNDATION
FOR PARKS AND RECREATION EXPENDABLE AND
ENDOWMENT FUNDS
WHEREAS, the increasing demand for park amenities and recreation programs,
coupled with rising operating and capital costs, make it a challenge for the Parks,
Recreation and Cultural Services Department to maintain current service levels; and
WHEREAS, the Department recognizes the need to find additional sources of
funds other than fees and tax revenue; and
WHEREAS, the Lodi Community Foundation provides a simple, low-cost
framework for the Department to generate public donations; and
WHEREAS, creation of a designated expendable fund through the Lodi
Community Foundation can serve to generate funds for specific community projects or
to supplement current programs and services; and
WHEREAS, creation of an endowment fund would eventually serve as a long-
term source of supplemental revenue for the Department; and
WHEREAS, the Lodi Parks and Recreation Commission serves as the City
Council's advisory board for parks and recreation matters, has $13,589.84 in an
undesignated trust account, and on April 1, 2014, voted unanimously (4-0) in favor of
creating Parks and Recreation expendable and endowment funds through the Lodi
Community Foundation and using the entire amount in its trust account, divided evenly
between the two funds as seed money.
THEREFORE, BE IT RESOLVED by the City Council of the City of Lodi that:
0 The City Manager execute the necessary agreements for a Parks and
Recreation designated expendable fund and a Parks and Recreation
endowment fund within the Lodi Community Foundation;
• The $13,589.84 in the Recreation Commission trust account be divided
equally between the two funds;
• The Recreation Commission serve as the advisory board for expenditure of
amounts up to the City Manager's signature authority;
• The City Manager, the Parks, Recreation and Cultural Services Director, the
Park Superintendent and Recreation Superintendent have authority to
request expendable fund monies, or endowment fund earnings, following
approval of the Recreation Commission for amounts up to the City Manager's
signature authority, or following approval of the City Council for amounts in
excess of that authority;
The authorized representatives of the Save the Grape Bowl Fund
(expendable) and the All -Veterans Plaza Fund (endowment) be allowed to
move their existing Lodi Community Foundation funds as sub -funds within
the newly created Parks and Recreation expendable and endowment funds.
Dated: April 16, 2014
I hereby certify that Resolution No. 2014-56 was passed and adopted by the City
Council of the City of Lodi in a regular meeting held April 16, 2014, by the following vote:
AYES: COUNCIL MEMBERS — Hansen, Johnson, Mounce, Nakanishi,
and Mayor Katzakian
NOES: COUNCIL MEMBERS — None
ABSENT: COUNCIL MEMBERS — None
ABSTAIN: COUNCIL MEMBERS — None
e--&JOHL-OLSON
City Clerk
2014-56