City Council Regular


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  Item # 11.       
Meeting Date: 05/13/2019  
FROM: Cameron Harding

SUBJECT
Non-Profit Grant Awards for Fiscal Years 2019-20 and 2020-21
RECOMMENDATION
Approve $1,040,663 of grant funding to 21 Cypress non-profit organizations for Fiscal Years 2019-20 and 2020-21.
SUMMARY
The City Council's Non-Profit Contribution Program provides non-profits the opportunity to request funding and support for their programs.  The application process occurs every other year and grants are approved by the City Council. Twenty-one organizations submitted applications requesting more than $1 million in direct and indirect support.  In the FY 2017-18 and 2018-19 grant cycle, 20 organizations were awarded a total of $1,016,118 in direct and indirect support.
DISCUSSION
On April 22, 2019, the City Council conducted a workshop on FY 2019-20 and 2020-21 grant applications and the City Council’s Non-Profit Contribution Policy which establishes criteria and procedures for the grants. The policy states:
  1. A minimum of 55% of the non-profit organization’s membership and executive board must live in Cypress to be considered as highest priority. National organizations focusing on Cypress may use a member’s Cypress business address to meet the 55% requirement.
  2. Fee waivers may be awarded for a maximum of 15 room rentals (based on availability) for meetings and functions, and may include two ballroom rentals. Approved senior clubs may be exempt from this limit based on the programs they provide.
  3. The City may suspend support to the non-profits at any time due to financial constraints or major changes in operations, finances, direction, and/or administration of the non-profit.
  4. Direct funding awarded to a non-profit organization may be apportioned on a scheduled basis and requires an invoice after completion of the program or service in order to receive payment.

The City received 21 applications and reviewed each to determine the value of requested support. Two types of grants are awarded:
  • Direct funding represents cash grants.
  • Indirect funding represents the value of in-kind contributions such as staff support, use of equipment, waiver of facility or permit fees, and printing.
The requested and recommended support for the 21 groups over the next two-year cycle are:
 
  Requested Recommended
Direct Funding $59,870 $32,320
Indirect Funding $1,012,003 $1,004,343
Unanticipated Funding N/A $4,000
Total $1,071,873 $1,040,663

Six organizations seek direct funding and all 21 seek indirect funding. A summary of the requests is attached to this report.
 
Criteria Used to Support Funding Recommendations
In addition to using the policy to evaluate requests, applications were evaluated for record of service and benefit to the community, opportunity costs, and the organization's fiscal condition.
 
Direct Funding Summary
Direct funding requests exceed the recommendation by $27,550. Four non-profit organizations are recommended for a lesser grant than requested. The recommendation for these organizations matches their award in the prior funding cycle except for Cypress Art League.  The Cypress Art League recommendation differs from the request to more accurately reflect postage costs the City incurs on behalf of the Art League. The adjusted recommendation was discussed in the City Council workshop and the City met with the Art League after the workshop and the Art League reports support for its recommended funding.
 
Indirect Funding Summary
Requests for indirect support exceed the recommendation by $7,660. Four non-profit organizations are recommended for a lesser grant amount than requested because:
  • Facility use requests have been duplicated as they have previously been approved through separate agreements.
  • Facility use requests exceed those allowed by the Policy.
  • Facility use requests are not consistent with previous facility usage.
Alzheimers Orange County, American Legion Post 295, Cypress Art League, and Cypress Sunshine Club do not meet the 55% residency and/or executive board membership requirements set by policy. St. Irenaeus Church falls below the 55% residency requirement, but its membership includes more than 4,200 Cypress residents. While the Cypress Chamber of Commerce's executive board membership does not meet the residency requirement, the policy allows national organizations to use a member’s Cypress business address.
 
 
CONSTRAINTS IMPACTING RECOMMENDATIONS FOR FACILITY USE
Given high demand for facility rentals and athletic fields, the City seeks to balance non-profit use with City events, holiday and maintenance-related closures, school district uses, and revenue generating rentals.
 
2018 Facility Rentals and Athletic Field Usage

FACILITY USER
Community Center
FACILITY RENTALS
Senior Center
FACILITY RENTALS
Athletic
FIELD RENTALS
School district joint use, fee waived 5% 1% 2%
Non-profit, fee waived rentals 21% 90% 95%
City-sponsored events 5% 0% 3%
Paid rentals 72% 9% <1%
 
Fee waivers for room rentals and athletic fields reduce revenues and represent approximately $630,000 in forgone income over the upcoming two-year cycle. This revenue would otherwise support operations, programming, or facility maintenance.
 
UNANTICIPATED GRANTS
It is recommended the City Council provide the City Manager authority to approve $2,000 of annual indirect support for non-profits (or programs) not included in the attached summary. This would enable the City to efficiently support organizations or programs that meet the policy, but were not known to the City when applications were due. The unanticipated grant flexibility was first provided in 2017 and three grants totaling $2,577 have been provided.
BUDGET IMPACT
The recommended direct and indirect awards for the next two-year cycle is $1,040,663. Sufficient funds are available in FY 2019-20 and will be included in the budget.
LEGAL REVIEW
No legal review is required for this item.
  
APPROVED BY: Peter Grant, City Manager
Attachments
Contribution Policy for Non-Profit Organizations
NPGR Summary
NPGR Requests
NPGR Recommendations


    

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