City of Culver City, California
Agenda Item Report
Meeting Date: _09/04/12__ Item Number: _A-2__
PRCS COMMISSION AGENDA ITEM: Review and Make Recommendations
Regarding the PRCS Department Donation/Sponsorship Program’s Goals, Funding
and Accounting Mechanisms and the Development of Promotional Materials.
Contact Person/Dept.: Dan Hernandez,
PRCS Director
Phone Number: (310) 253-6655
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No []
Public Hearing: [] Action Item: [X] Attachments: []
Public Notification: (Email) Meetings and Agendas – Parks, Recreation and Community
Services Commission (08/30/12).
Department Approval:Dan Hernandez
(08/28/12)
City Attorney Approval: N/A
Chief Financial Officer Approval: N/A City Manager Approval: N/A
RECOMMENDATION:
Staff recommends that the Parks, Recreation and Community Services (PRCS)
Commissionreview and make recommendations regarding the PRCS Department
Donation/Sponsorship Program’s goals, funding and accounting mechanisms and
the development of promotional materials.
BACKGROUND:
The PRCS Commission has, over the years, continued to explore ways of securing
external resources to support the PRCS Department facilities and programs.
Pursuant to Commission action taken at the January 4, 2011 meeting, following
update was communicated to the City Council via email on January 12, 2011:
The Parks, Recreation and Community Services Commission would like to keep the City
Council apprised of the Commission’s progress on the topic of a PRCS Department
Sponsorship Program. The points in the outline below are not necessarily listed in order of
priority:
1. An online format is preferred over a brochure format for the presentation of the
details of the sponsorship program
2. A tri-fold brochure should be developed as a basic marketing tool to spur interest in
the program and direct people to the website
3. The sponsorship program should have its own website and/or web pages
4. The Subcommittee hopes to find a volunteer to design the website/web pages City of Culver City, California
Agenda Item Report
5. Links to the program site should be included in local online newspapers and
Neighborhood Association websites
6. Colorful pictures and inviting copy are essential to making the online gift catalog
noteworthy and appealing to potential donors
7. The amenity prices listed in the gift catalog should include the maintenance cost
8. Park amenity sponsorship opportunities should be organized and presented by park
9. An “Adopt-A-Park” theme highlighting one park at a time might be a good way to
market the sponsorship program to those who live near and/or have a special
interest in specific Culver City parks
10. Both amenity replacements and the addition of new amenities should be included in
the program
11. Staff should prioritize the parks and amenities that are most in need of replacement
12. Staff should identify park locations where amenities could be added
13. Jeff Muir, Chief Financial Officer of the City of Culver City, has recommended the
following language to apprise potential donors of the City’s tax status:
Tax Status of City Tax Status of City Tax Status of City Tax Status of City: : : : Contributions or dona Contributions or dona Contributions or dona Contributions or donations to the City for a public purpose are tax tions to the City for a public purpose are tax tions to the City for a public purpose are tax tions to the City for a public purpose are tax- - - -
deductible under section 170(c)(1) of the Internal Revenue Code. deductible under section 170(c)(1) of the Internal Revenue Code. deductible under section 170(c)(1) of the Internal Revenue Code. deductible under section 170(c)(1) of the Internal Revenue Code. Please check with your Please check with your Please check with your Please check with your
tax advisor. tax advisor. tax advisor. tax advisor.
Since donations to the City for a public purpose are tax-deductible, it appears that it
may be unnecessary to develop a 501(c)(3) foundation for the specific purpose of
accepting park donations.
14. An internal City process must be developed to ensure that the donations are
earmarked for the sponsorship program
15. Donations under a predetermined amount will be acknowledged with a certificate;
donations at and over that amount will be acknowledged by a plaque on or near the
donated amenity
16. Donation plaques should be a standard size and design; once the monetary donation
threshold has been met, the donation amount should not be reflected by the plaque
itself
17. The PRCS Department Sponsorship Program should be phased in as follows:
a) Park Amenities – examples: park benches, picnic tables, barbeques, drinking
fountains, concrete-cast trash receptacles
b) Park and Recreation Facility Improvements, including the Senior Center and
the Veterans’ Memorial Building – examples: tables and chairs, building fixtures,
audio-visual equipment, rug and/or floor replacement
c) Services and Programs – examples: teaching a new or existing class,
developing/funding a new program or class; offering additional services to
program participants; underwriting a camp or afterschool program
d) Corporate Sponsorship, including Naming Rights – if approved by the City
Council, a Naming Rights Policy will be developed for the PRCS Department City of Culver City, California
Agenda Item Report
18. The PRCS Commission requests the City Council’s support in looking into floating a
bond to pay for Park amenities
19. Explore having a check-off box on Business License applications and renewal forms
for Park donations
If the members of the City Council have any questions or concerns regarding this progress
report, please let the Commissioners know. If the City Council does not have any
questions or concerns regarding this update, then staff and the Commission will move
forward with the development of the PRCS Department Sponsorship Program based on
the four-phases outlined in # 17 above.
At the April 5, 2011 meeting, the Commission reviewed and agreed upon the
concept of a draft brochure for the replacement amenity donation programand a
draft webpage that was designed as a template for the development of single park-
specific web pages for each Culver City park with unmet needs. Pursuant to
Commission action at that meeting, the then members of the Financial Resource
Development Subcommittee, Chair Daly Redholtz and Commissioner Stuart
addressed the City Council on behalf of the Commission and distributed the sample
brochure and webpage to Council members during the “Public Comment – Items Not
On the Agenda” portion of the April 11, 2011 City Council meeting.
At the July 3, 2011 meeting, the Commission took action to defer making
recommendations regarding the draft “Park Hero” brochure until Commissioner
Yanda was present at the meeting (moved by Commissioner Kim; seconded by
Commissioner Hudson; passed 4 – 0, excused absence/Yanda).
At the August 7, 2012 meeting, the Commission took action to defer making
recommendations regarding the draft brochure until the next meeting and to add a
general discussion on the Program includinghow to fund the items, hold money and
ideas for other marketing materials (moved by Chair Stuart; seconded by
Commissioner Kim; passed 5 – 0).
DISCUSSION:
This Agenda Item has been prepared to give the PRCS Commission the opportunity
toconduct a broader discussion regarding the PRCS Department’s
Donation/Sponsorship Program, including reviewing and making recommendations
regarding the Program’s goals, funding and accounting mechanisms and the
development of promotional materials.
On August 20, 2012, the members of the Donation/Sponsorship Program Ad Hoc
Subcommittee met with the PRCS Director to discuss the “Park Hero” brochure.
The Subcommittee is in the process of making revisions to the brochure and will
bring an updated draft brochure back to the Commission for discussion at a future
date. City of Culver City, California
Agenda Item Report
With regard to the funding and accounting mechanisms of the Donation/Sponsorship
Program, initially the intent of the Commission was to have donations made directly
to the City, since donations to the City for a public purpose are tax-deductible (see
point #13 in the Background section of this report). However, as per the Chief
Financial Officer, this mechanism will not accommodate the Commission’s desire to
enable donors to contribute smaller sums (for example, $5.00 or $10.00) for
specified or unspecified purposes, allowing such donations to accumulate until there
are sufficient funds to purchase a Park amenity. Therefore, staff is currently in the
process of evaluating which local non-profit that would be willing to act as a Fiscal
Receiver for the Program would be the best fit for the City, the Department and the
Program.
Fiscal Receivership provides non-profit status and funding management for other
organizations. Typical services of a Fiscal Receiver include:
• Provide tax deductions for donors.
• Deposit and maintain records of all funds received and disbursed.
• Disburse funds for charitable purposes as specified by the partner agency.
• Provide annual report of funds received and paid.
FISCAL ANALYSIS:
With the exception of the staff time spent on the project, there is no fiscal impact
associated with the discussion of this Agenda Item. Staffing and budgetary
restraints prevent PRCS Department staff from allocating significant resources
towards this project.
MOTION:
That the Parks, Recreation and Community Services Commission:
Review and make recommendations regarding the PRCS Department’s
Donation/Sponsorship Program’s goals, funding and accounting mechanisms
and the development of promotional materials.