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SR-300-002-01 (64) '~ CNS:BS:sd ~ Council Mtg. 7/26/8~ e '300- 1002-0/ ~- "- D JUL 2 6 1983 Santa Monlca, Callfornia TO: Mayor and Clty Councll FROM: Clty Staff SUBJECT: Recommendation to Approve 1983-84 Grantee Agreements for Implementatlon of Communlty Development ProJects Introductlon This report transmits proposed Grantee Workplans and Budget Summarles for Councll reVlew and approval and also presents minor changes to the standard contract language included in all Communlty Development Program Grantee Agreements. Background On June 21, 1983, the Clty Councll approved the 1983-84 Co~~unlty De- velopment Plan WhlCh lncluded 36 grants to 26 non-proflt communlty organlzatlons successfully meetlng approved program crlteria. Since that tlme, Clty staff has completed a number of actlvlties lntended to develop meaningful contract documents which not only serve as the legal and blndlng authorlty for the proJects but also serve as the baS1S for proJect lmplementatlon and evaluatlon durlng the year. The attached Grantee Workplans and Budgets for 24 of the approved grants have been analyzed by staff of the Department of Community and EconomlC Development ln conJunctlon with grantee staff. These documents repre- sent the culmlnatlon of contract development actlvities lncludlng a workshop on workplan develop~ent, lndlvidual negotlatlon seSSlons wlth each grantee, and redraftlng by grantees as necessary. Documents for the remaining grants are stlll In the process of belng finallzed and wlll be transmitted for Councll approval on August 9, 1983. 11- f) JUL 2 6 19B3 ~ e e Mayor and City CounC11 -2- July 26, 1983 Discussion In rev1ew1ng the attached documents, it 1S 1mportant to note the follovnng: 1) Workplans Grantee workplans were developed (a) to provide a clear p1cture of the scope and depth of actlvltles funded by the Clty, (b) to pro- vide a conslstent format among grantees for reporting program status to the C1ty on a perlodlc bas1s, and (c) to serve as a basls for pro- gram evaluat10n to occur durlng the 1983-84 f-iscal year. All arantees, wlth some mlnor exceptlons, were asked to develop obJectives In the follow- lng categorles: Program obJectlves - This section constltutes the major program obJectlves for the actlvlt1es funded by the City. In some cases where the City provldes partQal support for the organizatlon's overall program, the obJectives include all activlties performed by the organization. Proposed obJectlves have been developed to provlde a comprehenslve "plcture" of the serVlces provlded, utll1- zlng a number of measures that, when comblned, glven an accurate program descrlption. Santa Monlca Benefit - In cases where grantees serve only Santa Monica resldents, this category may be combined wlth the program obJectives described above. However, ln many cases grantees serve a wider geographlcal area and therefore additlonal measures 1ndl- catlng the beneflt to the Santa Monlca community rave been Ineluded. These b~neflts may lnclude dlrect serVlces to residents, lmpacts OP signif1cant segments or target groups in the commun1ty, services ~ e Mayor and Clty Councll -3- e July 26, 1983 ~ to other organlzatlons ln Santa Monica, or general benefits to the communlty as a whole. It lS lnterestlng to note that many programs, in addltion to serVlng dlrect clients, provide a range of benefits to the communlty that only became clear to Clty staff after dlScuss10ns w1th each grantee. Only ln dlSCUS- slng program operatlons 1n depth dld many lmportant beneflts surface -- beneflts that grantee staff assumed to be apparent. Th1S sectlon provldes the opportunlty for these areas to be detalled. Outreach obJective - ObJect1ves 1n thlS sectlon are meant to clearly state the intent of special outreach to those most 1n need of each partlcular serVlce. The target populatlon and method of outreach varies based on the specific service and needs of each program. Evaluation obJective - In the past, all grantee program reviews performed by the City have included a reVlew of evaluatlon proce- dures used by grantees to determlneprogram effectlveness. When approprlate, flndings and recommendations were transm1tted to the grantee. However, 1983-84 represents the f1rst year the Clty 15 focus1ng on evaluatlon by requir1ng that all grantees have an evaluatlon component ln place which will produce written results by March, 1984. Whlle the level of SOphlsticatlon varles among grantees based on the length of tlme such procedures have been lmplemented or the Slze of the program, all workplans lnclude tar- gets for evaluat10n ln the cOffi1ng year. Networklng obJect1ve - While network1ng wlth other organizatlons 1S an ongolng process for most grantees, thlS seetlon requires that 1n addltion to part1c1pation 1n these actlvlties, the grantee take '~ayor and C1ty coun~ -4- e July 26, 1983 an in1t1at1ng role 1n provid~ng resources, techn1cal assistance or other serV1ces to agencles ln the communlty. The intent of requiring thlS Ob]ectlve is to create a "synergistlc" effect where the use of City funds creates more benef1ts than Just those der1ved from direct program serV1ces. It is meant to encourage "experts" with1n agencies to share valuable knowledge 1n spec1flc program or adm1nlstrative areas w1th those who experlence slmilar situat10ns in the operatlon of thelr organ1zatlons. In review1ng this sectlon of the workplans, the result is clear. Workshops on speclf1c lssues are belng planned; commun1ty meeting space lS being offered; and direct consultation by various staff members wlll be provlded. Fundra1s1ng Ob]ectlve - All grantees were asked to submit targets for communlty fundraiS1ng and private donations. As wlth the evaluation sect10n of the workplan, fundraislng obJectives have been developed In the past and monltoring and staff reV1ews have prevlously resulted In recommendatlons to agencies in th1S area. 1983-84 1S the first year, however, that spec1f1c fundralsing goals w1ll be closely monltored. A general guideline used In devel- op1ng these targets was that programs should raise at least 10% of the C1ty grant amount 1n communlty fundra1sing or pr1vate dona- tlons. Then, based on the prevlous fundra1s1ug record and current capacity of the organlzatlon, lndlv1dual targets were der1ved. In cases where the fundraising target lS lower, var1ables such as the income of the organiz~tion's "constituency" or the need to further develop capaclty for fundra1slng, was taken into cons1deratlon. All targets exceedlng 10% were developed at the optlon of the grantee. e ~ayor and C~ty Counc~l -5- e July 26, 1983 While thls approach does not represent a requlrement for "matchlng funds" In the pure sense, it does represent a commltment by the agencies to contribute to Clty-funded actlv~tles from other sources. To ensure thlS, all targets for fundraislng included ln -the work- plan have correspondlngly been included In the total Grantee Budget. A reVlew of the Budget Summarles attached to this report and the line ltem detail avallable ln the Council Offlce therefore not only ldentlf~es the use of Clty funds but also the proJected uses of funds ralsed from other sources. Whl1e the above structure has been utll1zed in the development of all proposed workplans, ~t is important to note that each document was developed on a case by case bas~s thus allowlng for fleXlbillty in thlS structure when necessary. It is lmportant, at the onset of the program year, that both the grantee and the C~ty view the work- plan as the bas~s for evaluation and reportlng durlng the year. In that llght, the process of workplan development has been a cooperative and developmental process between both partles. 2) Budgets The attached Budget Summaries ldentlfles program budgets by the sources of lTICorne (lncluding but not limited to Clty funds) and by specifled line item categories. As rnentlvnec prevlou51y, li~e ltern detall of each budget 15 In the Councll Offlce for more thorough review. In revlewlng the proposed budgets, Clty staff assessed (a) the degree to WhlCh the proposed expendltures wereconslstent wlth the stated obJectlves lnthe workplan, (b) the appropriateness of allocatlon plans as requlred by Federal fundlng sources, (c) the appropriateness Mayor and C1ty COtll1l -6- e July 26, 1983 of spec1f1c levels of expend1tures for maJor 1tems such as staff salar1es, contracted serV1ces, faC1l1t1es expense, and (d) the specl- f1C way City funds are to be util1zed within the context of the entire program or proJect budget. Spec1al attent10n was glven to this last 1tem when analyz1ng programs that rely heavily on the C1ty for fund1ng. In some cases, budgets were restructured to 1ntroduce the use of non- C1ty funds for staff salar1es or other maJor expenditures on a phased- In bas1s over the year (e.g., 20% of staff salar1es w1ll be paid from non-Clty sources by the end of the second quarter). Wh1le the total amount of C1ty fund1ng rema1llS the same, the reallocat1on of C1ty funds w1ll serve as an incentive to develop stable and ongoing sources of alternat1ve funding. ~~lle not 1ntended to be unduly restr1ct1ve, these changes have been made 1n some cases to ensure that the comm1t- ment to leverage C1ty funds 1S ~a1nta1ned. Aga1n, grantee budgets have been developed to serve not only as legal documents but also to serve as f1scal plann1ng documents WhlCh may result In gradual changes 1n agency f1nanc1ng. After rev1ew1ng specific workplans and budgets for each agency, lt 16 also 1nterest1ng to note the aggregate effect of C1ty fund1ng on the del1very of serVlces to the commun1ty. For the 24 programs assessed 1n this report, approx1mately 23,300 cl1ents w1ll rece1ve some k1nd of dlrect commun1ty serVlce from the programs or projects to be funded. In addltion, a w1de range of other benefits are derived as prev1ous1y specif1ed. Of the $1.177 m1llion 1n City funds contributed to these 24 proJects, an addit10nal $2.589 m1ll1on 1S contr1buted from other sources. Therefore, for every dollar of C1ty funds lnvested in these programs, $2.20 1n other funds 1S be1ng generated. These general mea- sures certalnly lndicate the large lmpact the C1ty'S contrlbutlon has on the del1very of 1ffiportant serV1ces to area resldents. Mayor and City coU4lt~1 -7- e July 26, 1983 3) Contract PrOV1Slons The standard contract "bollerplate" for COP'1ffiunity Development Program grantees was submitted to the Councll for actlon on July 12, 1983, ln the form of a proposed contract wlth Ocean Park Communlty Organlzatlon. Subsequent changes were made by the Clty Council on that date. In add~t~on, the followlng mlnor changes (as underlined) are recommended for lnc1usion ln all future contracts: Sectlon 22. AFFIRMATIVE ACTION Substltute subsectlon C wlth the followlng: "In accordancewith the City' 5 i'Jomen and Minority Business Enter- prlse niMBE) Program approved by Clty Councll on March 8, 1983, Contractor agrees to reVlew the City's W~illE Library of Dlrectories and Mlnorlty Vendors Llst and conslder such sources in the pro- curement of equipment, materials, supplies and professional ser- Vlces, and to the greatest extent practlcable, assure that women and mlnor~ty buslnesses are soliclted whenever they are potentlal sources." Sectlon 31. POLITICAL ACTIVITIES Substitute subsection C with the following: "Contractor shall not expend any funds provlded under thlS Agree- ment nor use or cause the use of staff tlme, faclllties, premlses, equlpment, mater1als or supplles WhlCh are provided or deslgnated as a part of the program funded under the terms of th~s Agreement for lobbYlng actlvlty that 1S prohlblted by Sectlon SOl (C) (3) of the Internal Revenue SerV1ce Code or by regulatlons and leg1slatlon set forth ln Sectlon 2 of this Agreement. The C1ty shall provlde the Contractor wlth admlnlstrative lnstructlons regarding relevant Internal Revenue SerV1ce Code deflllLtions and provlsions. Contrac- tor 1S lndependently respons1ble for complYlng with all statutes and regulatlons." Recommendatlons City staff recommends that Clty Councll (1) approve the changes to the standard Grantee Agreement as noted above, (2) approve all workplans and budgets for grantees as attached, and (3) authorlze the City Manager to execute Grantee Agreements, lncludlng the approved workplans and e Hayor and City Councll e -8- July 26, 1983 budgets, for these agencles ~n furtherance of the C~tyls 1983-84 Commun~ty Development Program. Prepared by: Barbara Stlnchfleld, Grants AdNlnistrator