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HomeMy WebLinkAboutStaff Report 3620 City of Palo Alto (ID # 3620) City Council Staff Report Report Type: Consent Calendar Meeting Date: 4/8/2013 City of Palo Alto Page 1 Summary Title: Letter of Agreement Between Palo Alto Art Center Foundation and City of Palo Alto Title: Letter of Agreement Between Palo Alto Art Center Foundation and City of Palo Alto Memorializing Ongoing Financial Support of Children's Programs at the Palo Alto Art Center From: City Manager Lead Department: Community Services Recommendation Staff recommends that Council approve a Letter of Agreement between the Palo Alto Art Center Foundation and the City of Palo Alto (Attachment A) and an associated Budget Amendment Ordinance (Attachment B) to memorialize the ongoing financial support the Foundation provides annually in the amount of $81,000 to support children’s educational programs at the Palo Alto Art Center. Executive Summary The City of Palo Alto and the Palo Alto Art Center Foundation (the Foundation) wish to mutually cooperate and support each other, as they have for many years, to enhance and sustain the capacity of the Palo Alto Art Center (the Center) to develop and provide art education opportunities and related services to the Palo Alto community. This Letter of Agreement supports the previously adopted public/private partnership agreement between the City and the Foundation and memorializes an annual payment of $81,000 (as outlined in this agreement, $72,029.15 only for this fiscal year) to support children’s programs at the Palo Alto Art Center for the entire community. Background The Palo Alto Art Center Foundation (Foundation) has played an integral role in the support and operation of the Palo Alto Art Center since its inception in 1973 (note that from 1973 to 2000 the organization was identified as the Palo Alto Cultural Center Guild). The mission of the Foundation is to expand the reach and impact of the Palo City of Palo Alto Page 2 Alto Art Center through fundraising and advocacy. In 2010, the public/private partnership between the Center and the Foundation was memorialized in an agreement for mutual cooperation and support (CMR 350:10). Discussion Historically, the Foundation has supported the Center in the area of children’s programs: the Project LOOK! school tour program; family days; Children’s Fine Arts class program. The Foundation has also historically made two annual payments to support these programs: one in the amount of $20,000 and one in the amount of $18,000. With this letter, the Foundation and Center intend to memorialize these annual support payments and expand the support by $43,000 annually to include another important children’s program: the Cultural Kaleidoscope artist-in-the-schools program. Resource Impact Funding from the Foundation was not anticipated during the budget planning process in Fiscal Year 2013. Included in this staff report is a budget amendment ordinance for $72,029 (Attachment B) to acknowledge the donation and increase the budget for Art Center temporary staff in support of children’s educational programs in the Fiscal Year 2013 budget. Ongoing annual funding of $81,000 as a result of the new agreement will be included in the Fiscal Year 2014 Budget. Attachments:  Attachment A - Letter of Agreement Between the Art Center Foundation and City of Palo Alto (DOCX)  Attachment B - BAO - Art Center Donation (DOCX) 130220 dm 00710169 February 20, 2013 Deborah Pappas, President Board of Directors Palo Alto Art Center Foundation c/o Palo Alto Art Center 1313 Newell Road Palo Alto, CA 94303 RE: Public-Private Partnership Dear Deborah: The City of Palo Alto and the Palo Alto Art Center Foundation wish to mutually cooperate and support each other, as they have for many years, to enhance and sustain the capacity of the Palo Alto Art Center (the “Center”) to develop and provide art education opportunities and related services to the Palo Alto community. In 2010, the City and Foundation signed a public-private partnership agreement to memorialize their understanding and agreement regarding their long-standing partnership and also identify their separate and joint roles and responsibilities within the partnership. By this letter, the City and Foundation intend to further memorialize their understanding and agreement regarding the nature and extent of the Foundation’s on-going financial support of the children’s programs at the Center. In order to enhance the impact of those programs, the City acknowledges and understands that the Foundation will make an annual donation of $81,000 in two equal installments of $40,500 on or before July 1 and December 31 of each fiscal year subsequent to fiscal year 2013 in order to defray costs of the children’s programs at the Center. For fiscal year 2013, the City would note that the Foundation has made a payment of $72,029.15 to be applied to the children’s programs at the Center. For fiscal year 2014, the City wishes to inform the Foundation that it intends to use the $81,000 amount to support the Project LOOK!, Children’s Fine Art, and Cultural Kaleidoscope programs at the Center. 130219 dm 00710169 The City wishes to acknowledge the generous donation of the Foundation for fiscal year 2014 and its invaluable assistance provided to City staff over the years in connection with the children’s programs offered at the Center. Sincerely, James Keene City Manager cc: Greg Betts, Director, Community Services Department Karen Kienzle, Palo Alto Art Center Director Grant Kolling, Senior Assistant City Attorney On behalf of the Palo Alto Art Center Foundation, I have read and understand, and agree to, the provisions of the understanding and agreement between the City and the Foundation, as stated above. Date: Palo Alto Art Center Foundation By: Title: Attachment B ORDINANCE NO. XXXX ORDINANCE OF THE COUNCIL OF THE CITY OF PALO ALTO AMENDING THE COMMUNITY SERVICES DEPARTMENT BUDGET FOR FISCAL YEAR 2013 TO PROVIDE AN APPROPRIATION OF $72,029 FOR CHILDREN’S PROGRAMS AT THE PALO ALTO ART CENTER. The Council of the City of Palo Alto does ORDAIN as follows: SECTION 1. The Council of the City of Palo Alto finds and determines as follows: A. Pursuant to the provisions of Section 12 of Article III of the Charter of the City of Palo Alto, the Council on June 18, 2012 did adopt a budget for fiscal year 2013; and B. The Palo Alto Art Center has worked collaboratively with the Community Services Department on educational art programs for the community since 1973; and C. This partnership was formalized in an agreement in 2010; and D. In financial support of this agreement, the Palo Alto Art Foundation has donated a total of $72,029 for Fiscal Year 2013; and E. The City’s Community Service Department will use this funding to support children’s educational art programs; and F. City Council authorization is needed to amend the 2013 budget as hereinafter set forth. SECTION 2. Grant revenue totaling Seventy Two Thousand and Twenty Nine Dollars ($72,029) is hereby received, and appropriated as such in the Community Services Department budget. SECTION 3. The Temporary Salaries budget of the Community Services Department is hereby increased by Seventy Two Thousand and Twenty Nine Dollars ($72,029). SECTION 4. As specified in Section 2.28.080(a) of the Palo Alto Municipal Code, a two-thirds vote of the City Council is required to adopt this ordinance. Attachment B SECTION 5. The actions taken in this ordinance do not constitute a project requiring environmental review under the California Environmental Quality Act (CEQA). SECTION 6. As provided in Section 2.04.330 of the Palo Alto Municipal Code, this ordinance shall become effective upon adoption. INTRODUCED AND PASSED: AYES: NOES: ABSTENTIONS: ABSENT: ATTEST: _________________________ City Clerk __________________________ Mayor APPROVED AS TO FORM: _________________________ Senior Assistant City Attorney __________________________ City Manager __________________________ Director of Community Services __________________________ Director of Administrative Services