Loading...
HomeMy WebLinkAboutReso 1995-18080 RESOLUTION NO. 18080 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA APPROVING COUNCIL POLICY REGARDING THE USE AND SPONSORSHIP OF NON-PROFIT ORGANIZATIONS IN RELATIONSHIPTO THE BOARDS AND COMMISSIONS SYSTEM OF THE CITY WHEREAS, on June 6, 1995, in response to a request from the International Friendship Commission (IFC) for staff assistance to form a non-profit corporation to supplement the activities of the IFC, the Council directed staff to review the IFC's request as well as several concerns expressed by the City Attorney and report back with staff's recommendation; and WHEREAS, the attached policy reflects staff's recommendations and affects the boards and commissions generally but the IFC and Police Activities League are the most immediately affected. NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Chula Vista does hereby approve Council Policy 110-12 regarding the use and sponsorship of non-profit organizations in relationship to the Boards and Commissions system of the City. Presented by Approved as to form by rues R. Thomson Deputy City Manager City Attorney Resolution 18080 Page 2 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: USE AND SPONSORSHIP OF POLICY EFFECTIVE NON-PROFIT ORGANIZATIONS NUMBER DATE PAGE IN RELATIONSHIP TO THE BOARDS AND COMMISSIONS 110-12 10/24/95 SYSTEM OF THE CITY ADOPTED BY: Resolution 18080 I DATED: 10f24/95 Background: There has been a recent interest in establishing non-profit corporations to supplement the business that has been assigned to, or is capable of assignment to, one or more of the boards, commissions, or departments of the City. There are a variety of pros and cons to the use of non-profits to do part of the business of the City. For a more detailed discussion of them and on this policy, please see the Council Agenda Report on the Council Policy Regarding the Use and Sponsorship of Non-Profit Organizations, presented to the City Council at their meeting of October 24, 1995. Purpose: It is the purpose of this policy to establish the criteria and a checklist of potential conditions under which the City will lend the aid of its offices and staff in the formation of a non-profit, or lend the City's continued sponsorship to such non-profits. Policy: Approval of the City Council is required for the aid of any Officer or staff of the City in helping, as part of their official duties, in the formation of a new non-profit corporation, or for the City's sponsorship of any new non-profit. The Council reserves full discretion to grant or deny the extension of such aid and sponsorship of any non-profit on a case-by-case basis. In order to obtain the aid of City staff in the formation of a non-profit or the City's sponsorship of a new non-profit, the person or persons proposing such non-profit C'Incorporators") shall apply for such aid or sponsorship to the Council ("Application"). The Incorporator's application shall indicate the reasons why they believe a non-profit is an appropriate mechanism to help achieve a community purpose related to the City's functions. Examples of such reasons could include the potential for improved fundraising, grant elig~ility, volunteer participation, or needed flexibility. The application should describe why the Incorporators believe that a non-profit organization is better able to achieve a community purpose than a City board/commission/committee or department and any evidence or indications to support their stated reasons. Said Application shall first be reviewed by the City Manager, or herfinis designee, who shall provide the Council with a report ("Report") and recommendation with regard to such Application. 8esolution 18080 Page 3 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: USE AND SPONSORSHIP OF POLICY EFFECTIVE NON-PROFlr ORGANIZATIONS NUMBER DATE PAGE IN RELATIONSHIP TO THE BOARDS AND COMMISSIONS 110-12 10/24/95 SYSTEM OF THE CITY ADOPTED BY: Resolution 18080 I DATED: 10/24/95 Among such other things as the City Manager deems appropriate to include in the Report, the City Manager or designee shall indicate whether he/she concurs with the Incorporators that a non- profit is a more proper business form for a given community purpose or mission as opposed to assigning the purpose or mission to one or more of the City's boards/commissions/committees or departments, and why. Checklist of Potential Conditions The Report shall make recommendations as to which, if any, of the following conditions he/she deems appropriate to require of the Incorporators as a condition of obtaining City staff assistance in the non-profit formation process and the extent of assistance/sponsorship the City should offer. 1. Council as Members. The Articles of Incorporation of the non-profit could establish a "Membership" group consisting of the Council, with the Members having specified authority such as to make major corporate decisions that affect the continued existence of the non-profit, to elect some or all of the Board of Directors, or to approve any modifications to the Articles of Incorporation and/or By-Laws. 2. Council to Select/Sit on Board. The Articles and By-Laws could specify that the Council have the authority to appoint some or all of the Board of Directors, whose terms could coincide with our existing two 4 year terms now applicable to boards and commissions. The Artides/By-Laws could specify that at least one member of the Council be a voting Board member. The Artides/By-Laws could specify that some or even the entire Council are "ex-officio" Directors of the Board with the right to participate in all Board discussions, if they wish. Alternatively, someone designated by the Council could be specified to have such involvement. 3. Council to Approve Changes to Organization. Whether the Council is specified to be Members or not, the Articles/By-Laws could specify that the Council have the authority to approve all Articles and By-Laws, and any proposed amendments or deletions. The Council could even be given the authority to initiate, on their own volition, any By-Law amendments, which could not be modified by the Board. 4. Prohibition Against Inconsistent Positions With City. A non-modifiable provision of the Articles and By-Laws could specify that the non-profit will not engage in a mission, purpose, goal, plan, or activity that either is inconsistent with an approved policy of the City or is directly disapproved by the City Council. 5. Conditions of Snonsorshin. The City's continued sponsorship, including staff time, coordination of activities, funding, use of City logo, use of City facilities, etc., could be conditioned on compliance by the non-profit with its Articles and By-Laws or with specified City policies. Resolution 18080 Page 4 COUNCIL POLICY CITY OF CHULA VISTA SUBJECT: USE AND SPONSORSHIP OF POLICY EFFECTIVE NON-PROFIT ORGANIZATIONS NUMBER DATE PAGE IN RELATIONSHIP TO THE BOARDS AND COMMISSIONS 110-12 10/24/95 SYSTEM OF THE CITY ADOPTED BY: Resolution 18080 I DATED:. 10/24/95 6. Approval of Dissolution. The Articles and By-Laws could specify that only the Council shall have the power to dissolve the Corporation, or that the Council would approve such a dissolution. The Articles/By-Laws could require that, upon such dissolution, the assets of the Corporation shall be liquidated and the proceeds spent on the purpose for which they were originally acquired, as the Board or Council shall direct, but if that purpose can not be achieved directly, shall be spent for a substantially comparable purpose as the Board or Council shall determine. 7. Public Disclosure. The By-Laws could be written so as to make the institutionalized disclosure/ethics laws now applicable to the City applicable to their Directors, such as the public records act, the Brown Act, the disclosure statement of economic interests, prohibition of participating in matters where a Director has a conflict, prohibited travel, prohibited gifts, etc. Resolution 18080 Page 5 PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 24th day of October, 1995, by the following vote: AYES: Councilmembers: Alevy, Moot, Padilia, Horton NAYES: Councilmembers: None ABSENT: Councilmembers: Rindone ABSTAIN: Councilmembers: None Shirle~ Horton, Mayor ATTEST: ~Authelet, City Clerk STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Resolution No. 18080 was duly passed, approved, and adopted by the City Council at a regular meeting of the Chula Vista City Council held on the 24th day of October, 1995. Executed this 24th day of October, 1995. Bever;y~A. ~'uthelet, City (~lerk