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Home My WebLink About16 - Review of Policy A-12 (Discretionary Grants)CTY OF F NEWPORT BEACH City Council Staff Report August 11, 2015 Agenda Item No. 16 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dan Matusiewicz, Finance Director — (949) 644 -3123, dmatusiewicz @newportbeachca.gov PREPARED BY: Steve Montano, Deputy Finance Director PHONE: 949 - 644 -3240 TITLE: Review of City Council Policy A -12 (Discretionary Grants) ABSTRACT: Council members voted unanimously on July 28, 2015, to place City Council Policy A -12 (Discretionary Grants) on the agenda for consideration. Council Policy A -12 allows the City Council to direct revenue towards worthy projects or programs, which the City Council deems beneficial to Newport Beach's resident's quality of life. RECOMMENDATION: Review City Council Policy A -12 and provide direction to staff. FUNDING REQUIREMENTS: There are no funding requirements related to this item. DISCUSSION: Per City Council Policy A -6 (Open Meeting Policies) a member of the City Council may place any item on the City Council agenda for discussion. If three members of the City Council wish to examine the issue, staff will prepare an appropriate report and return the item to the City Council with greater detail for discussion and /or action. Council members voted unanimously on July 28, 2015, to place City Council Policy A -12 (Discretionary Grants) on the agenda for consideration. City Council Policy A -12 allows the City Council to direct revenue towards worthy projects or programs which the City Council deems beneficial to Newport Beach's resident's quality of life. The City Council has four tools at its disposal for allocating discretionary grant funds, including: 1. Federal Community Develop Block grant (CDBG) Social Service Funds; 2. Community Programs Grants from the General Fund; 16 -1 3. Special Event Grants from the General Fund; and 4. The "District Discretionary Grant Account' from the General Fund. These established funding tools are further described in City Council Policy A -12 (Attachment A). ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQX) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Description Attachment A - City Council Policy A -12 Discretionary Grants 16 -2 ATTACHMENT A City Council Policy A -12 Discretionary Grants 16 -3 W Ii►a DISCRETIONARY GRANTS It shall be the policy of the City Council that the City of Newport Beach's ( "City") budget specifically allows the City Council to, at any time during the year, direct revenue towards worthy projects or programs which the City Council deems beneficial to Newport Beach's resident's quality of life. The City Council notes that it has multiple tools at its discretion to assist non - profit agencies, community groups, community events, or enhancement projects within the City. These tools are: A. Federal Community Development Block Grant (CDBG) Social Service Funds; B. Community Programs Grants from the General Fund; C. Special Event Grants from the General Fund; and D. The "District Discretionary Grant Account" from the General Fund. These funds shall be provided for in the following manner: (CDBG) Social Services funds shall be allocated according to standards set by the federal government and appropriated at least once each year. The level of funding offered for social services in Newport Beach shall be based upon federal formulas and the specific amount of CDBG revenue allocated to the City in any one fiscal year. The Community Development Department shall administer these funds after City Council approval of the funds' expenditure. Community Programs Grants shall be expended from the General Fund in the amount of $40,000 each fiscal year. The City Manager's Office shall review all requests for Community Programs Grants and shall forward recommendations for funding to the City Council for final approval. At the time of the City Manager's presentation of any Community Programs Grant award proposals to the City Council, the City Manager shall show which entities, if any, have received funds from the CDBG Social Services Fund, the District Discretionary Grant Account, or a Special Event Grant during the same fiscal year. The City Manager shall follow these priorities when recommending Community Programs Grants: A. Local groups located within the City and offering programs to City residents; 1 16 -4 W Ii►a B. Regional groups located in Orange County and offering programs to City residents; and C. Groups located in California and offering programs to City residents. Groups not offering programs or services to local residents shall not be eligible for support from the City. Special Events Grants are intended to allow meritorious community, social or athletic events to offset some or all of their City fees for their event. Doing so should decrease costs to the event organizer so that beneficiaries can see even greater benefit from any fundraising associated with the events. The City Manager shall, in consultation with the City Council, establish a threshold amount for the proposed City budget that reflects adequate support for these events. The City Manager shall establish an administrative policy for these grants. The City Manager may divide the funding into more than one category to ensure that different types of events are fairly measured with peer events. The City Council shall consider and approve the Special Event Grant allocations by recipient. District Discretionary Grant Accounts. At the start of the fiscal year, the City Manager shall provide an account for each Council District within the City Council's Budget division known as the District Discretionary Grant Accounts. The City Council shall set a funding level of these Accounts during the budget process preceding the June adoption of the City's budget. Each City Council Member shall have, at his or her discretion, the ability to allocate their District's funding to uses, projects, or community entities that benefit the City as a whole or the City Council Member's district specifically. Any expenditure from these Accounts must have an identifiable public benefit. Requests to expend these funds should be directed by each City Council Member to the Finance Director. Expenditures will be reported to the City Council annually. The report will include a brief description and the public benefit associated with each expenditure. At the conclusion of the fiscal year in which the District Discretionary Grant Accounts received appropriation, all unencumbered funds in the Accounts shall be deposited in the City's General Fund Reserve Account. N 16 -5 W Ii►a Adopted - July 8,1985 Amended - October 28,1991 Amended - January 24,1994 Amended - May 22, 2001 Amended - June 22, 2010 Amended - September 27, 2011 Amended - May 12, 2015 Formerly F -22 16 -6