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HomeMy WebLinkAboutB-1c Canyon City Foundation process (2)TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: F. M. DELACH, DATE: JUNE 20, 2005 CITY MANAGER . AGENDA ITEM SUBJECT: PROCESS FOR RECOMMENDING NOMINEES FOR THE MONROVIA NURSERY FOUNDATION BOARD RECOMMENDATION It is recommended that City Council discuss the process by which the City will make nominations and appointments to the Monrovia Nursery Foundation Board. BACKGROUND The Development Agreement between the City of Azusa and the Monrovia Nursery (MNC)that controls the development of the Rosedale Development Project stipulates that MNC will form a non-profit community foundation named the "City of Azusa/Monrovia Nursery Co. Foundation", a qualified Internal Revenue Code entity that will provide financial benefits to non-profit charitable organizations, civic organizations and public facilities within the City of Azusa. The City Council shall appoint two Board members and MNC shall appoint three Board members. At this point MNC has not made any appointments to fill its three positions. Within five (5) years after the first single-family residence is sold one (1) of the three (3) Board members appointed by the MNC shall be replaced by a resident of the project selected by the other four (4) Board members. The Foundation is funded initially by a $2.5 million contribution by MNC, of which $500,000 is to be utilized exclusively for the Azusa Public Library and related programs. The Foundation is funded subsequently through a 0.5% contribution of the closing purchase price of each home sale in the project with certain exceptions. Therefore, funding will be largely dependent on the turnover of homeowners in the future. Since the main focus of the Board appears to be a disbursing entity rather than a fund raising entity, it would seem prudent and judicious that any nominations or appointments made to the Board have some level of background, education and/or experience in assessing/rating non-profit, community, civic and public service projects (An analogous process for the sake of clarity is the process the city undertakes in disbursing Community Development Block Grant Funds). Additionally, experience in the accounting and fiscal monitoring of similarly sized philanthropic organizations would be an asset to the new organization FISCAL IMPACT Since the Foundation is self-funded, there is no impact to the City.