City Council
MEETING DATE: 6/22/2015
TITLE:
Title
Funding Agreement for the Cathedral Center.
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FROM:
Pat Milos, Community Development Director
Nicholas Hermsen, Deputy City Attorney
RECOMMENDATION:
Recommendation
Staff recommends the City Council authorize the City Manager to enter into a funding agreement with the Cathedral Center and authorize the necessary payments and budget transfers.
Body
BACKGROUND:
At the May 27, 2015 study session the Cathedral Center's President, Paul Padilla, and Interim Executive Director, Peter Rittenhouse, made a presentation to the City Council regarding the services that the Cathedral Center provides and some of the financial challenges it is currently facing.
The City Council subcommittee assigned to the matter has considered the Cathedral Center's request for additional funding and recommends that the City enter into a funding agreement to provide as follows:
1. The City will make an annual contribution of $50,000 to the Cathedral Center on an ongoing basis.
2. The City will make a one-time $50,000 loan to the Cathedral Center this year. The loan will be repaid without interest at the rate of $10,000 per year for five years. As an incentive to improve fundraising, if contributions from individuals, grants, foundations and other sources exceed $60,000 in the fiscal year prior to the date the loan repayment is due, $5,000 of the $10,000 payment will be forgiven for that year. If contributions exceed $75,000, the entire $10,000 payment for that year will be forgiven.
3. The Cathedral Center will be required to provide quarterly reports to the City which include detailed information on the Center's financial status, fundraising progress, operational data, and strategic plan progress.
4. The City Council will be authorized to appoint one ex-officio member to the Cathedral Center's Board of Directors.
5. The agreement will be revisited in April, 2016, for renewal and/or ...
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