City of Culver City, California
City Council Agenda Item Report
RECOMMENDATION:
Staff recommends the City Council discuss the criteria and standard procedures for
“Quasi-City Organizations” and direct staff as deemed appropriate.
BACKGROUND:
At the February 26, 2007 City Council meeting, Vice Mayor Gross requested and
received City Council consensus to agendize the subject of “Quasi-City
Organizations (QCO)”. Based upon that direction, staff placed the item on the
Tentative Agenda for May 14, 2007. On April 16, 2007, during discussion of a
request by the Culver City Democratic Club, a reference to this overall policy
discussion was made and the placement of this item on the Tentative Agenda for
May 14, 2007 was announced. Because this item needed additional review, this
item was postponed until tonight’s agenda.
Over the past 50 years or so, a number of organizations have been granted City “co-
sponsorship.” Under past practice, former Directors of Parks, Recreation, and
Community Services handled requests for co-sponsorship. Absent guidance from
an objective policy, organizations were granted “co-sponsorship” without meeting
consistent, identifiable criteria. There are also other organizations the City either
directly (through a payment) or indirectly (via a fee subsidy or waiver) supports.
Meeting Date: 05/29/2007 Item Number: _A-3
AGENDA ITEM: Discussion of Draft Criteria and Standard Procedures for Quasi-
City Organizations and Consideration of Reorganization and/or Appointment of
Councilmembers to the Dr. Martin Luther King, Jr. Committee and the Fiesta La
Ballona Committee
Contact Person/Dept.: Martin R. Cole,
Assistant City Manager
Phone Number: (310) 253-6000
Fiscal Impact: Yes [X] No [] General Fund: Yes [X] No []
Public Hearing: [] Action Item: [X] Attachments: [X]
Public Notification:
Master Notification List (05/24/07)
Department Approval:
Martin R. Cole (05/23/07)
City Attorney Approval:
Carol Schwab (by H. Iker) (05/23/07)
City Controller Approval:
Marlee Chang (05/23/07)
City Manager Approval:
Jerry B. Fulwood (05/23/07) City of Culver City, California
City Council Agenda Item Report
Two goals from tonight’s discussion include: (1) determination of objective criteria
upon which co-sponsorship is based and (2) the general requirements and
expectations the City would have of co-sponsored groups.
DISCUSSION:
When this agenda item was referenced at the April 16, 2007 City Council meeting,
Councilmembers gave general comments related to some of the policy issues
needing clarification and/or resolution. The general tenor of the comments related to
the need for a policy that sets objective criteria to be used when considering City co-
sponsorship of organizations. Attached as Exhibit 1 is a list of organizations
mentioned during the discussion of April 16, 2007. The list also included some
additional, similar groups identified by staff. The list is not meant to be all-inclusive.
To facilitate discussion, the following paragraphs address major topics and provide
recommendations for the City Council’s consideration. The discussion begins with
the laying of a legal foundation and then continues to address areas considered for
Council’s policy direction on this topic.
It should be noted this item is the first of two parts for discussion of related topics.
This first part relates to QCO’s and the second (which is expected to return to the
City Council on June 18) will continue on the subject of sponsorship of organizations
which are not currently considered QCO’s.
What are the basic legal criteria applicable when considering supporting a QCO?
In general, decisions to support any particular organization must be applied in a
consistent manner based upon objective criteria. The recommendations contained
in this report follow this general guidance. When the second phase of this
discussion comes before the City Council (related to sponsorship of organizations),
additional, more specific legal criteria will be discussed at that time.
As a matter of policy, what general criteria should a supported QCO satisfy?
In preparing the following paragraphs, staff is relying upon two groups, the Friends
of the Culver City Dog Park and the Culver City Historical Society, both of which
have current Memoranda of Understanding with the City. While these Memoranda
do not address all issues, they do provide a basic framework for the interaction
between the City and the group.
(1) Formalization of the QCO Organizational Structure
City of Culver City, California
City Council Agenda Item Report
Having some kind of formal structure is important in laying a basis for the
relationship between the QCO and the City. Both of the example groups listed
above are not-for-profit, tax exempt corporations. Further, they both have official
documents that specify their own governing structure and that structure is
independent from the City. While a 501(c)(3) not-for-profit corporation may not be
applicable to all QCO’s, the structure does have distinct advantages for both the
organization and the public.
Two QCO’s, the Fiesta La Ballona Committee and the Dr. Martin Luther King, Jr.
Committee have important community events associated with their groups.
However, both groups have an informal organizational structure (to the best of staff’s
knowledge, neither group has a Memorandum of Understanding with the City).
Further, the City Council has created a City Council Committee of two
Councilmembers to provide additional support to these groups. One suggestion
staff makes is for the City Council to consider making certain QCO’s formal
Committees of the City (for example, like the Homelessness Committee). This
would provide a more formal organizational structure and allow the City Council to
appoint Councilmember(s) to these new Committees.
Recommendation: The City Council should consider requiring all QCO’s to
have some formal organizational structure (For-Profit Corporation, Not-for-
Profit Corporation, Sole-Proprietorship, Limited Partnership, Formal City
Committee)
(2) Formalization of the Relationship Between the QCO and the City
Over the past decades, several QCO’s have existed in an informal way. While this
worked in the past, oftentimes a lack of a formal relationship can create confusion
and provides no framework for resolution of disagreements between the QCO and
the City. For those QCO’s that partner with the City in providing a community
service (such as the Culver City Senior Citizen Club), sometimes it is unclear who is
responsible for what. To resolve these questions and clarify the relationship
between QCO and the City, a Memorandum of Understanding or similar formal
document would be helpful.
Recommendation: The City Council should consider requiring all QCO’s to
have a formal document setting forth the relationship between the QCO and
the City, including basic responsibilities of both parties.
(3) Activity and Fiscal Reporting
It is important for both the City and the QCO’s to have an opportunity to report to the
City Council and the community on their activities and financial status. All of the City of Culver City, California
City Council Agenda Item Report
QCO’s provide a valued service to the community, ranging from improving our
relationships with people in our sister cities to arranging for wonderful community
events.
It should also be noted that when the City Council provides either a direct or indirect
contribution to a QCO, the dollars remain sourced as public, taxpayer funds.
Uniform financial reporting guidelines would facilitate reporting to the City Council
and also help the QCO comply with any IRS reporting regulations. Financial
assistance may be provided to those in financial need {in what form(s)}.
Recommendation: The City Council should consider requiring all QCO’s to
report on their activities on an annual basis (at a minimum) and to provide the
City Council with standardized financial reports on a quarterly basis.
(4) Indirect Contributions
Rather than receiving a direct contribution from the City, some QCO’s request an
indirect contribution. This generally takes two forms: staff support and/or fee
waivers. While these types of support can certainly be justified (for example, for
reasons of economic development or community-wide interest), the City Council
may wish to provide policy direction on how to determine which types of events the
City Council would consider for indirect contributions. Also, as a fiscal planning tool,
the City Council may wish to review and discuss the QCO’s request for the
continuation of the staff support and/or fee waivers as part of the annual budget
process.
Recommendation: The City Council should consider and may wish to approve
the QCO’s request for indirect contributions and/or fee waiver, and those
QCO’s requests will be included for the annual budget review as part of annual
budget process.
(5) City Council Participation
Culver City is the epitome of an active and participatory community and these traits
are reflected by the members of the City Council. City Councilmembers are often
active participants in the myriad of organizations throughout Culver City and beyond
as representatives of the City.
With respect to QCO’s, a question arises as to the level of participation by members
of the City Council. It can vary from direct involvement (in some cities, City
Councilmembers have a seat on a board of directors or a committee) to indirect
(where the City Council may form a Council Committee to act a liaisons to a QCO) to City of Culver City, California
City Council Agenda Item Report
supportive (where the QCO handles its own day to day activities and may seek
support from the City Council from time-to-time).
In the past, City Councilmembers may have chosen to become direct participants in
QCO’s. However, over time, Councilmembers have become subject to more laws
envisioned to minimize conflicts of interest and maximize public participation in city
government decisions. Additionally, some QCO’s have organized themselves with
an independent Board of Directors elected by the membership of the QCO. To
address these changes, the City Council may wish to provide policy direction on how
the City Council and the individual Councilmembers can best participate in
community organizations while remaining clear of conflicts. Additionally, the City
Council may wish to define a standard method of participating with all QCO’s.
Recommendation: The City Council may wish to develop a standard method
of providing direct City Council involvement in QCO’s. An alternative course
of action is to define the form of City Council involvement in the City’s
agreement with individual QCO’s.
ASSIGNMENT OF COUNCILMEMBERS TO COUNCIL COMMITTEES RELATED
TO THE DR. MARTIN LUTHER KING, JR. DAY COMMITTEE AND THE FIESTA
LA BALLONA COMMITTEE:
At its meetings of April 14, 2007 and April 23, 2007, the City Council determined to
not make changes to the membership of both the Dr. Martin Luther King, Jr. Day
Committee and the Fiesta La Ballona Committee until such time as the City Council
could further discuss the broader topic of QCO’s. The City Council may wish to
provide staff with direction this evening on these two subjects
FISCAL ANALYSIS:
The potential fiscal impact will be determined based on the specific
recommendations as directed by the City Council, and a detailed fiscal impact will be
prepared and presented as part of a follow-up staff report.
ATTACHMENTS:
1. Examples of Quasi-City Organizations and Support Received
MOTION:
That the City Council:
City of Culver City, California
City Council Agenda Item Report
Consider the recommendations made with respect to Quasi-City Organizations
and direct staff as deemed appropriate.
MEETING DATE: May 29, 2007
AGENDA ITEM: Discussion of Draft Criteria and Standard Procedures for
Quasi-City Organizations and Consideration of Reorganization and/or
Appointment of Councilmembers to the Dr. Martin Luther King, Jr. Committee
and the Fiesta La Ballona Committee.
ATTACHMENTS
Pages
1. Examples of Quasi-City Organizations and Support
1
ReceivedCity of Culver City
Examples of Some Quasi-City Organizations (QCO)
29-May-07
Organization City Council Liaison Contract
Staff
Assistance
Use of City
Facilities
_
FY 06/07
Direct Support
Indirect
Support
Fiesta La Ballona Committee Council Committee No Yes Yes $10,000 Yes
Culver City Sister Cities Committee No No Yes Yes $14,000 Yes
Dr. Martin Luther King, Jr. Day Committee Council Committee No Yes Yes $5,000 Yes
Culver City Senior Citizens No No Yes Yes $0 Yes
Friends of the Culver City Dog Park No Yes Yes Yes $0 Yes
Culver City Historical Society No Yes No Yes $0 Yes
Total:
$29,000