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HomeMy WebLinkAbout04 - Proposed Revisions to City Council Policy A-12, Discretionary GrantsPORT CITY OF O � _ i NEWPORT BEACH City Council Staff Report <i FO RN April 9, 2019 Agenda Item No. 4 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Carol Jacobs, Assistant City Manager, cjacobs@newportbeachca.gov PHONE: 949-644-3303 TITLE: Resolution No. 2019-32: Proposed Revisions to City Council Policy A-12, Discretionary Grants ABSTRACT - The City Council requested a review of City Council Policy A-12, Discretionary Grants to provide minor changes. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and b) Adopt Resolution 2019-32, A Resolution of the City Council of the City of Newport Beach, California, Amending City Council Policy A-12 "Discretionary Grants" to Include Cultural and Arts Programs, Adjusting Priorities for Funding and Other Revisions. FUNDING REQUIREMENTS: The proposed changes to the policy would increase the Community Grants from $40,000 per year to $75,000 per year based on the last three years of increases in expenditures authorized by the City Council. The program is funded in the City Council budget, account number 01005005-821006, City Grant. The total budgeted Discretionary budget is as follows: Grant Amount Community Programs Grants $ 75,000 Special Event Grants $315,000 District Discretionary Grants $ 42,000 Culture and Arts Programming $ 40,000 Community Development Block Grant $ 50,000 Total $522,000 4-1 Resolution No. 2019-32: Proposed Revisions to City Council Policy A-12, Discretionary Grants April 9, 2019 Page 2 DISCUSSION: City Council Policy A-12, provides a policy for Discretionary Grants. The City currently offers five discretionary grants including: Community Programs and Grants, Special Event Grants, District Discretionary Grants, Culture and Arts Grants (general funds) and Community Development Block Grant Funds (federal funds). The changes proposed to the policy include identifying all Discretionary Grants in one policy, increasing the Community Program Grants from $40,000 to $75,000, providing additional language regarding priorities for recommending award of programs, and adding language that would allow the City to audit the expenditures within a year of receipt if deemed necessary (Attachment B). ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) 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: Attachment A — Resolution No. 2019-32 Attachment B — Redline of City Council Policy A-12 4-2 ATTACHMENT A RESOLUTION NO. 2019-32 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING CITY COUNCIL POLICY A-12 "DISCRETIONARY GRANTS" TO INCLUDE CULTURAL AND ARTS PROGRAMS, ADJUSTING PRIORITIES FOR FUNDING AND OTHER REVISIONS WHEREAS, the City of Newport Beach ("City") is governed by the Charter of the City of Newport Beach, Newport Beach Municipal Code, and Council Policies; WHEREAS, Council Policy A-12 (Discretionary Grants) assists non-profit agencies, community groups, community events, or enhancement projects within the City by funding worthy projects or programs which the City Council deems beneficial to City's resident's quality of life; and WHEREAS, the City Council desires to amend City Council Policy A-12 to include financial support for culture and arts programs further described in Council Policy 1-10 (Financial Support for Culture and Arts), amending the priorities for Community Program Grants and increasing the amount authorized to be expended from the General Fund on Community Program Grants. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby amends City Council Policy A-12 (Discretionary Grants) as provided in Attachment 1, attached hereto and incorporated by reference. Section 2: All prior versions of the City Council Policy A-12 that are in conflict with the revisions adopted by this resolution are hereby repealed. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. 4-3 Resolution No. 2019 - Page 2 of 2 Section 4: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 5: The City Council find the adoption of this resolution and the amendment of Council Policy A-12 is not subject to the California Environmental Quality Act ("CEQA") 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, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 9t' day of April 2019. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE -A 0'� C 6't'� Aaron C. Harp City Attorney Attachment 1: Revised City Council Policy A-12 Emil A-12 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. Community Programs Grants from the General Fund; B. Special Event Grants from the General Fund; C. "District Discretionary Grant Account" from the General Fund; D. Culture and Arts Grant pursuant to Council Policy I-10; and E. Federal Community Development Block Grant (CDBG) Social Service Funds. These funds shall be provided 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 $75,000 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 Community Programs Grant, Special Event Grant, District Discretionary Grant, Culture and Arts Grant, or CDBG Social Services Fund during the same fiscal year. 1 4-5 A-12 The City Manager or designee shall follow these priorities when recommending Community Programs Grants: A. Local groups located within the City and offering programs to City residents; B. Regional groups located in Orange County and offering programs to City residents; C. Groups located in California and offering programs to City residents; and D. Groups that have not received funding from any City source for three (3) consecutive years or more. 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 or designee 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. The City reserves the right to audit the expenditure of these funds within a year of receipt. 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. 2 UP A-12 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. History Adopted F-22 - 7-8-1985 Amended F-22 -10-28-1991 Amended F-22 -1-24-1994 (changed to A-12) Amended A-12 - 5-22-2001 Amended A-12 - 6-22-2010 Amended A-12 - 9-27-2011 Amended A-12 - 5-12-2015 Amended A-12 - 4-9-2019 3 4-7 ATTACHMENT B A-12 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. Community Programs Grants from the General Fund; QB. Special Event Grants from the General Fund; D -.C. TI�"District Discretionary Grant Account" from the General Fund,. D. Culture and Arts Grant pursuant to Council Policy I-10; and A -.E. Federal Community Development Block Grant (CDBG) Social Service Funds) These funds shall be provided4of 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-$75,000 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 Community Programs Grant, Special Event Grantr'PBG Soei,i Ser-,,iees Rm , th,--District Discretionary Grant R, Culture and Arts Grant, or CDBG Social Services Funda Special Event Grant during the same fiscal year. 1 RM A-12 The City Manager or designee shall follow these priorities when recommending Community Programs Grants: A. Local groups located within the City and offering programs to City residents; B. Regional groups located in Orange County and offering programs to City residents; C. Groups located in California and offering programs to City residents; and: D. Groups that have not received funding from any City source for three (3) consecutive years or more. 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 or designee 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. The City reserves the right to audit the expenditure of these funds within a year of receipt. 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. 2 I • A-12 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. History Adopted F-22 - 7-8-1985 Amended F-22 -10-28-1991 Amended F-22 -1-24-1994 (changed to A-12) Amended A-12 - 5-22-2001 Amended A-12 - 6-22-2010 Amended A-12 - 9-27-2011 Amended A-12 - 5-12-2015 Amended A-12 - 4-9-2019 3 4-10