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SR-106-025-02 F:\CMANAGER\Staff Reports\SMMEFgra.doc Council Meeting: December 19, 2000 Santa Monica, CA TO: Mayor and City Council FROM: City Staff SUBJECT: Recommendation to Authorize City Manager to Negotiate a Grantee Agreement in the amount of $200,000 with the Santa Monica-Malibu Education Foundation for the Purpose of Conducting an Endowment Campaign for Music and Art Programs in the Public Schools Introduction This report recommends that the City Council authorize the City Manager to negotiate an agreement with the Santa Monica-Malibu Education Foundation (SMMEF) in the amount of $200,000 for the purpose of conducting an endowment campaign for music and art programs in the Santa Monica-Malibu Unified School District (SMMUSD). Background At the City Council meeting of May 23, 2000, the City Council authorized a grant of $25,000 to SMMEF for the purpose of conducting a study to determine the feasibility of a $10 million dollar campaign to endow music and arts programs in the public schools. In adopting the City budget for Fiscal Year 2000/01, the City Council made provision for an additional grant to SMMEF of $200,000 should the feasibility study encourage conduct of such a campaign. SMMEF engaged a qualified fundraising consultant to conduct the feasibility study. The consultant reviewed the history of SMMEF, conducted interviews with community leaders and has advised the Board of Directors of SMMEF that there is good potential for a successful campaign. Discussion In recent years SMMUSD has repeatedly faced funding constraints that threatened the art and music programs that enrich basic education. SMMEF is a long- standing local non-profit organization with the purpose of fundraising for the public schools. While individual school parents and PTA’s have tended to fundraise for their particular campuses, SMMEF attempts to distribute funds equally across the SMMUSD. SMMEF’s fundraising efforts have been successful at a modest level and their Board believes that the organization is prepared to conduct a campaign to develop a significant endowment. If successful, this campaign in support of music and arts programming could be replicated for athletic, science, technology and other enrichment programs. In addition to facilitating the foundations fundraising efforts, this grant will also help effectuate the City's commitment to promoting the arts in Santa Monica by nurturing a new generation of Santa Monica artists. The development of their talents will enrich City residents lives in the years to come. The City Council can stimulate private support for SMMUSD art and music programs by providing SMMEF with funds to conduct a professionally guided endowment campaign and has made provision in the budget to do so. The grantee agreement between the City and SMMEF will include the following general terms: ? The contract term will begin January 2001 and terminate no later than June 2003. ? City funds, totaling $200,000, will be used to support a campaign consultant, campaign coordinator, support staff and related supplies and expenses. SMMEF will contribute a minimum of $115,000 for a total campaign budget of approximately $315,000. ? Funds will be dispensed on a quarterly payment schedule; the City and SMMEF will review campaign progress every 6 months to determine disbursements for the next six-month period. ? SMMEF will be required to provide all necessary insurance coverage as required by the City and comply with other standard provisions included in the City’s Community Development Program Grantee Agreement. Budget/Financial Impact Funds for this purpose are available in the amount of $200,000 at account number 01274.544390. Recommendation It is recommended that the City Council authorize the City Manager to negotiate and execute a grantee agreement with SMMEF in the amount of $200,000 for the purpose of conducting a campaign to endow music and art programs for SMMUSD. Prepared by: Susan E. McCarthy, City Manager Barbara Stinchfield, Director of Community and Cultural Services