01-15-2008 - Policy for Assisting Non-Profit OrganizationsCity of West Covina
Memorandum
AGENDA
TO: Andrew G Pasmant, City Manager ITEM NO.. D — 7g
and the City Council
DATE January 15, 2008
FROM: Arnold M. Alvarez-Glasman, City Attorney
SUBJECT: POLICY FOR ASSISTING NON-PROFIT ORGANIZATIONS
RECOMMENDATION:
It is recommended that the City Council adopt the following resolution:
RESOLUTION NO. 2008-_� RESOLUTION OF THE CITY COUNCIL OF THEJ
CITY OF WEST COVINA ESTABLISHING A POLICY FOR ASSISTING NON-PROFIT
ORGANIZATIONS WITH THE PROMOTION OF EDUCATIONAL, HEALTH,.
SOCIAL AND CIVIC PROGRAMS
DISCUSSION:
The City is occasionally asked by non-profit organizations (MDA, West Covina Rose Float
Foundation, Lions, Elks, Rotary, Parents Place, NAACP, etc.) for assistance in relation to
projects, which would promote educational, health, social or civic programs. The California
Constitution, however, prohibits cities from making gifts of public funds where such gifts benefit
private parties rather than the public as a whole. This prohibition not only applies to monetary
gifts and gifts of property, but extends to such matters as fee waivers and debt forgiveness. As
such, it is necessary for a City to make a determination that any assistance provided serves to
benefit the public. Here, this goal is achieved by specifically finding that the promotion of
educational, health, social and civic programs carried on by non-profit organizations constitute a
valid public purpose which will benefit the general health, safety and welfare of the community.
One caveat of the policy is that the assistance be provided to a specific campaign or project
rather than for the general benefit of a non-profit organization. This is because a non-profit
organization may from time to time expend resources on. activities or programs that do not
benefit the public.. The use of City resources, for such a purpose could constitute an improper gift
of public funds and thereby subject the City to liability. This caveat seeks to insulate the City by
assuring that assistance is limited to identifiable projects, which fall within the City's policy.
The policy also contemplates that even assistance to a non-profit organization for a project that
benefits the public may incidentally benefit the organization and therefore clarifies that such
assistance would not violate the City's policy.
This policy also:delegates to the City Manager the authority to provide assistance to non-profit
organizations where the assistance does not exceed the City Manager's purchasing authority
under the municipal code. Currently the City Manager's purchasing authority is $25,000. Any
assistance, which would `exceed the City Manager's purchasing authority, would require City
Council approval by resolution.
FISCAL IMPACT:
None.
Prepared by:
Approved Via Telephone
Sean M. Beehler
Deputy City Attorney
Approved by:
Approved Via Telephone
Arnold M. Alvarez-Glasman
City Attorney
RESOLUTION NO.2008-
RESOLUTION OF THE CITY COUNCIL' OF THE CITY OF WEST
COVINA ESTABLISHING A POLICY FOR ASSISTING NON PROFIT
ORGANIZATIONS WITH THE PROMOTION OF EDUCATIONAL,
HEALTH, SOCIAL AND CIVIC PROGRAMS
WHEREAS, The City Council of the City of West Covina desires to preserve and assure
its ability to provide assistance to non-profit organizations in relation�to specific campaigns or
programs that will benefit the community;
WHEREAS, The City Council of the City of West Covina recognizes that Article XVI,
section 6, of the California Constitution prohibits gifts of public funds and property, including
the.waiving of,fees and forgiveness of debt, except where such gifts fulfill a public purpose;
WHEREAS; The City Council of the City of West Covina finds and declares that the
promotion of educational, health, social and civic programs carried on by non-profit
organizations constitute a'valid public purpose which will benefit the general health, safety and
welfare of the community; and
WHEREAS, The policy set forth herein will most. effectively and efficiently be carried
out by delegating the authority for its implementation to the City manager provided that the
monetary value of any gift does not exceed the City Manager's purchasing authority under the
West Covina Municipal Code. The City Council reserves the right to act on, any gifts that exceed
this amount.
NOW,, THEREFORE, BE IT RESOLVED by the City Council of the City of West
Covina as follows:
SECTION 1. The City Council of the: City of West Covina finds and declares that the
promotion of educational, health, social - and civic programs carried on by non-profit
organizations constitute a valid public purpose which will benefit the general health, safety and
welfare of the community.
SECTION 2. On behalf of the City of West Covina, the City Council hereby formally
adopts and establishes a policy governing the provision of assistance to non-profit organizations
for the promotion of educational, health, social and civic programs.
-SECTION 3. The City Council hereby authorizes the provision of assistance to" non-
profit agencies in relation to educational, health, social .or civic programs provided that such
assistance is designed to assist in a specific campaign or project and not for the general benefit of
the non-profit organization itself. The fact that such gift may incidentally benefit the
organization does. not violate the policy set forth herein as long as the gift's primary effect is to'
further a specific educational, health, social or civic program.
SECTION.4. The City Council hereby. delegates to the City Manager the authority to
provide assistance to non-profit organizations where the City Manager finds that such assistance
is consistent with this policy, provided that the reasonable value of the assistance does not
exceed the City Manager's purchasing authority under the West Covina Municipal Code. Any
gift, the reasonable value of which exceeds the City Manager's purchasing authority, must be
approved by resolution of the City Council.
SECTION 5. The City Council directs City'officials and staff to take appropriate steps
in furtherance of the establishment of this policy.
SECTION 6. The City Clerk shall certify the passage and adoption of this Resolution
and it shall thereupon be in full force and effect.
APPROVED AND ADOPTED on this 15th day of January, 2008.
Mayor Sherri Lane
ATTEST:
City Clerk Laurie Carrico
I, LAURIE CARRICO, CITY CLERK of the City of West Covina, California, do hereby certify
that the foregoing resolution was duly adopted by the City Council of the City of West Covina,
California, at a regular meeting thereof held on the 15th day of January, 2008, by the following
vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk Laurie Carrico
APPROVED AS TO FORM:
City Attorney Arnold Alvarez-Glasman