City Council
MEETING DATE: 12/9/2015
TITLE:
Title
Cathedral Center Funding and Operations Status
End
FROM:
Charlie McClendon, City Manager
RECOMMENDATION:
Recommendation
Staff recommends the Cathedral Center board and the City work with the Mizell Center toward a possible interim operating agreement.
Body
BACKGROUND:
The City provides funding to the Cathedral Center, a non-profit agency providing services to seniors in the community, in the amount of $40,000 annually ($18,500 from the general fund and $21,500 from CDBG). In June of 2015 Council approved a one-time loan of $50,000 to the Cathedral Center with the provision that it could be completely or partially forgiven over time based on the Center's success in its own fundraising. Hopes were high then that the Center would be able to hire a new executive director and meet the fundraising goals. Council expressed its commitment to the Cathedral Center, which counts among its clients many of the lowest income seniors in the area.
DISCUSSION:
Following is an update from Peter Rittenhouse on some of the efforts made by the board and the interim director at the Cathedral Center since June:
1. Fundraising:
Despite our best efforts fundraising has not been successful. The large local funders are "not interested" in "rescuing" the Center.
There are grants outstanding from Champions Foundation ($5K), CV Wellness Foundation (likely $10K) and Spearman Foundation (likely $10k)
Paula Kennedy will be finished as our Fundraising Consultant on November 30. The grant from Cal Wellness Foundation will be exhausted at that point.
The year-end fundraising letter was sent to 400+ people on November 19 and the results so far are not encouraging
2. Merger Possibilities:
Joslyn is not interested because it would be a distraction during their capital campaign.
Jewish Family Services is not interested unless there is a years-worth of operating income in the bank
The Sisters of Mercy have no interest. It is outside of their mission
Mizell has only slight interest but is the most logical because of current collaborations
3. Operations:
Expenses have been cut wherever possible and we are currently running with a part-time receptionist (21 hrs/wk) and myself
Many functions have been documented for future operations.
Accounting, audits and IRS 990's are in good order and filed
Invoices are current and there is only $3500 on one credit card that is due.
We have an arrangement on a month to month basis with a church group who is interested in staying , they pay $1,400/mo and have been generous
The afternoon bridge groups would like to stay and they pay about $4,000/year
4. Liabilities:
There are 2+ years remaining on the lease at less than $300/month
There is a copier with 3 years remaining on the lease at about $400/mo
There is a postage machine with 4 years remaining on the lease for a total liability of $4500.
There are no pension or time off liabilities
There are no lawsuits or complaints outstanding
5. Assets:
Essentially all property and equipment is fully depreciated. The current value if liquidated is less than $20,000
There is an old Ford van with little or no value.
There is current and valuable software including QuickBooks, Donor Perfect and "My Senior Center.;
There is approximately $12,000 in the checking account. That should carry us through December
There are grants receivable from the two cities, Cathedral City (approx. $33,000) and Rancho Mirage (approx. $13,000).
Given the situation outlined above a merger with the Mizell Center in Palm Springs seems like the best approach. The Cathedral Center board and the City would need to negotiate an interim agreement with Mizell regarding what it would take from current Center resources and the City for Mizell to operate the Center as a branch location for the next six months or so. Then a more permanent agreement would need to be developed. The six month interim period would give Mizell staff a chance to evaluate the needs of the clients of the Cathedral Center, the effectiveness of the various programs and what is needed in both the long and short term.
It appears that the only other alternatives are to take over the center as a City program, which would require far more than the money the City has been providing, or allow the Center to cease operations, probably early in 2016.
FISCAL IMPACT:
The remaining funds due the Cathedral Center this fiscal year are available in the budget. It is possible some additional funding may be required during the interim assessment period.
ATTACHMENTS:
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