Title
Chief Administrative Office recommending the Board:
1) Approve the use of the Community Funding Recipient Agreement template;
2) Authorize the Chief Administrative Officer to execute Community Funding Agreements with entities approved for community funding by prior Board Direction, using the Community Funding Recipient Agreement template;
3) Direct staff to return within 90 days with a Community Funding Policy for Board consideration; and
4) Provide direction to staff on what to include in the Policy.
FUNDING: General Fund.
Body
DISCUSSION / BACKGROUND
During the Budget discussions for Fiscal Year (FY) 2017-18, $50,000 was allocated for Community Funding Requests based on Board direction and has been allocated each year since. This amount was reduced to $30,000 with the FY 2020-21 Adopted Budget and then increased to $75,000 in FY 2022-23 based on Board direction. In FY 2023-24, there is $75,000 in appropriations for Community Funding Requests. During the FY 2023-24 Recommended Budget Hearing, the Board directed staff to return with process improvements for the Community Funding Requests.
Current Process
Board members bring the community funding request, with the amount allocated based on Board direction. Requests are for one-time funding allocations for cultural and community events or efforts that benefit residents. Some may have an economic development or promotions-related impact; however, it is not required for consideration. On December 12, 2017, with Legistar item 17-1335, the Board directed that the maximum amount for an individual request be set at $5,000. Funds may be provided to private nonprofits, public organizations, or community-based associations without formal nonprofit status. The Chief Administrative Office (CAO) does not make recommendations for funding on these requests, as the funding decisions are made solely at the discretion of the Board. A funding agreement and a Board finding of a public benefit are required for the County to process payment for any community funding requests.
Currently, the CAO processes all Community Funding requests once the Supervisor’s office drafts the Board item allocating the funding amount. The CAO coordinates with the Procurement and Contracts Division and the funding recipient to finalize a funding agreement. A final review is completed by County Counsel and Risk Management. On average, it takes 41 days from the approval of a Community Funding request by the Board to the execution of the agreement. The time it takes for payment to be processed depends on several factors, such as how quickly the recipient responds to information requests, whether the recipient is a registered vendor in the County's financial system, and the workload of County staff. After the agreement is executed, it may take up to 45 days for the recipient to receive funding. However, it generally only takes around two weeks.
Process Improvements
The CAO has prepared a Community Funding Recipient Agreement template (Attachment A) that has been reviewed and approved by County Counsel (Attachment B). If approved by the Board, the use of this template will decrease the amount of time needed to finalize and execute Community Funding agreements following Board approval. This will allow CAO staff to fill out the template and send it to Procurement and Contracts for final review and execution. This process change is expected to reduce the time to process the agreement and payment from 12 weeks to 4 weeks.
Also, during FY 2022-23, members of the Board of Supervisors requested that the Chief Administrative Office propose other process improvements to increase communication and clarify the process. Staff has developed a tracking sheet that will be updated as the agreements are processed, and all Supervisorial Districts will be able to access it. Staff has also developed an updated application (Attachment C) for the recipients to complete that will ensure the Chief Administrative Office has the information necessary to process the agreement and the recipient understands the process.
Board Policy for Community Funding
A formal policy for the allocation and use of Community Funding has not been established. In FY 2022-23, the Board allocated $73,015 of the $75,000 budgeted which resulted in some Supervisors having to delay their requests until FY 2023-24.
During the FY 2023-24 Budget Hearing, the Board made a request for the development of a more formal process. Staff are proposing that a Community Funding Board Policy be developed and are requesting that the Board provide direction on what staff should include in that policy. Staff are requesting direction on how the funds are distributed across the Supervisorial Districts, the maximum amount of a single request, and any other direction the Board provides.
There is currently no policy on how the funding is allocated across the Supervisorial Districts and in the past some Supervisors have utilized this funding more than others. Staff are recommending that the funding be split evenly across the five Supervisorial Districts. For FY 2023-24, this means that each Supervisor would have $15,000 to allocate. If a request is brought by multiple supervisors, the allocation would be split across the Supervisorial Districts. Staff have developed a spreadsheet that would be shared with the Supervisors to track this information. The Board could direct that the funding is not split across districts, offer different direction, or keep the current practice.
On December 12, 2017, when the Community Funding process was developed, a maximum request limit of $5,000 was established. The Board has the authority to change this amount. Staff are seeking direction from the Board on if they would like to remove, increase, decrease, or keep the current limit of $5,000.
Lastly, staff are seeking any other direction on what to include in the Community Funding Board Policy. Once direction is provided, Chief Administrative Office staff will draft the policy, adhering to Board of Supervisors Policy A-2 Guidelines for Writing Board of Supervisors Policies A-1 Development and Distribution of Board of Supervisors Policies, and return to the Board for approval.
ALTERNATIVES
The Board could choose not to approve a community funding agreement template and/or not request staff to return with a community funding policy.
PRIOR BOARD ACTION
See above.
OTHER DEPARTMENT / AGENCY INVOLVEMENT
County Counsel
FINANCIAL IMPACT
The Board of Supervisors allocated $75,000 in the FY 2023-24 Budget in General Fund - Other Operations (Department 15) to be available for community funding requests as allocated by the Board. There is no additional impact to the General Fund due to the approval of this item.
CLERK OF THE BOARD FOLLOW UP ACTIONS
N/A
CONTACT
Emma Owens, Principal Management Analyst