SR-301-005-03
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C/ED:CD:MK:rnk
CounCIl MeetIng 12/11/84
tl -IS
lEt 1 1 ltAA
""I 8 1985
Santa MonIca, CalifornIa
TO:
Mayor and CIty CouncIl
FROM:
CIty Staff
SUBJECT:
Recommendation to Allocate $39,050 of General Fund
MonIes to the WIlshire Montana NeIghbors AssocIatIon
for DevelopIng a Community OrganIzatIon In the
WIlshIre Montana NeIghborhood.
INTRODUCTION
ThIS report recommends that CouncIl approve the allocation of
$39,050 to the WIlshIre Montana NeIghbors AssoCIatIon (WMNA) for
a communIty organIzatIon In the WIlshIre Montana neighborhood.
BACKGROOND
On June 19, 1984, a staff report was transmItted to CounCIl In
preparatIon for adoptIng the 1984-85 CIty Budget which outlIned a
proposed strategy for provIdIng support to the WIlshIre Montana
neIghborhood. This was developed by staff In response to CounCIl
request for alternatIve ways to provIde support to the neighbor-
hood In lIght of staff's assessment that there was,at that tIme,
no Incorporated aSSocIatIon that could receIve and adminIster
CIty funds.
Upon approval of a $50,450 set-aSIde for support of a neIghbor-
hood organIzational effort, staff further developed a two-phased
fundIng process: the fIrst phase ($11,400) utIlIzed a consultant
((-15
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to perform a number of technical and program development actIvI-
tIes In order to have a vIable admInIstrative organIzation to
then Implement program actIvitIes. The second phase ($39,050) of
fundIng was made contIngent upon the completion of specifIed ac-
tIvItIes demonstrating a stable and representative organizatIon
In the neIghborhood. The desIgn and budget for the newly-formed
neIghborhood aSSOCIatIon was based upon the systematic approach
applIed in 1984-85 for refInIng the fundIng of neIghborhood as-
sociations. ThIS approach applIed a fundIng formula WhICh stan-
dardIzed the number of staff and the support serVIces awarded to
each organIzatIon.
In July, a "Request for QualIfIcatIons" (RFQ) was Issued for a
consultant and in August, 1984, the CIty entered Into a sIx-month
contract WIth a consultant to work WIth a core group of WIlshire
Montana neIghbors to develop a VIable organIzatIon. SInce that
tIme the maIn focus of thIS effort has been in formIng a stable,
representatIve board and In developing a legal entity capable of
receIVIng and adminIsterIng CIty funds.
DISCUSSION
CIty staff developed a reVIew plan (see Attachment I) WhICh was
to be used by the consultant and newly-formed Board of Directors
in determIning the organIzatIon's eligIbIlIty and preparedness
for receIving CIty fundIng. RecognIZIng the dIffIculty of Imple-
menting a program WIthout staff, the reVIew plan focused on the
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legal and admInistrative capacity of the organIzation and ad-
dressed the followIng Issues: board of directors; legal docu-
ments; personnel; program; and admInIstratIon.
Upon submISSIon of the requIred documentatIon, staff embarked on
an assessment of the organIzatIon. The fOllowIng outlInes the
areas of review.
1. Board of Directors
The Board of DIrectors of the WIlshire Montana NeIghbors ASSOCIa-
tIon currently consists of ten reSIdents of the area. They are
representatIve In terms of geographIc areas of the neIghborhood
(see Attachment II) and most of the members have been Involved In
the formatIon of the organIzatIon over the last several months.
Because the by-laws allow for a mInimum of nIne members and a
maXImum of fIfteen, the Board has fIve open seats at thIS tIme.
UnderstandIng the need for a broad-based board, It was deCIded
that the open pOSItIons would not be filled untIl there was a
larger neIghborhood base and neIghborhood-wide recrUItment could
take place. The executIve commIttee has been authorized to meet
and develop crIterIa for appOIntments to these open seats. Pro-
spectIve board members WIll submIt letters of applIcatIon, and
deCISIons to appOInt new members will be based on the crIterIa
developed by the executIve committee and approved by the Board.
2. Le9al Documents
A reVIew of the mInutes of each of the WMNA Board MeetIng minutes
Indicates that the memberShIp devoted a portion of ItS fIrst four
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meetIngs In researchIng, draftIng and approvIng the ArtIcles of
Incorporation and the By-Laws (see Attachments III and IV). The
ArtIcles of IncorporatIon of WMNA were fIled In the offIce of the
CalIfornIa Secretary of State on October 30, 1984 and the Board
of DIrectors held Its IncorporatIon meetIng that evenIng.
The state and federal applIcatIons for tax exemptIon (SectIon
23701 of the Revenue and TaxatIon Code and SectIon 50l(c) (3) of
the Internal Revenue Code) have not yet been fIled. The comple-
tIon and fIlIng of the tax-exempt papers have been IdentIfIed as
the next tasks to be completed by the consultant In conjUnctIon
WIth the Board. Since thIS has always been a requirement for
CIty funding In the past, fundIng to WMNA would be contIngent
upon the filIng of these applIcatIons.
3. Per sonnel
Job descrIptIons have been developed and approved by the Board of
DIrectors for the pOSItIons of executIve dIrector, communIty or-
ganizer and offIce admInIstrator. The Board of Directors has
begun the recrUItment for the executIve dIrector by developIng a
lIst of approximately 100 local agenCies to whom the Job an-
nouncement Will be sent. An advertIsement for the pOSItIon IS
expected to be placed In a local newspaper In early December.
All Job notIces IndIcate that the pOSItIon IS contIngent upon
City funding. ThIS procedure was InstItuted to ensure that
staffing deCiSions could be made expedItiously In the event that
City fundIng IS forthcomIng. To date, several applIcations have
been received and the ad hoc search/hire committee of WMNA hopes
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to begin the IntervIew process in late December and make Its
deCISIon by early January.
Personnel polIcIes have been drafted and approved by the Boa~d of
DI~ectors. WhIle an affIrmative actIon sectIon IS Included in
the poliCIes, they a~e sIlent on dIscrImInatIon agaInst handi-
capped pe~sons. Because of the requIrements of SectIon 504 of
the RehabIlItatIon Act of 1973 and TItle VI of the CiVIl RIghts
Act of 1964, It is necessary for the organIzatIon to include an
anti-dIscrImInatIon clause regardIng the dIsabled In Its person-
nel pOliCIes. The Department of CommunIty and EconomIC Develop-
ment's OffIce for the DIsabled wIll aSSIst the organizatIon In
complYIng WIth thIS reqUIrement and modifYIng theIr polICIes.
4. Program DeSIgn
In settIng up a membership organIzatIon, It was necessary for the
Board of DIrectors to determIne membershIp reqUIrements. In the
approved By-Laws a votIng member IS IdentifIed as resident of the
area who is current WIth hIs/her membershIp fee; a non-votIng
member IS an organIzatIon or bUSIness located In the area or a
non-reSIdent of the area who has paId the approprIate annual
membershIp fee. The Board approved the follOWIng membershIp fee
structure: IndIVIduals $10; famIlIes $20; senIors/lOW-Income $5;
and bUSIness/organIzatIons $25.
Each of the Board members has JOIned the organIzatIon and has
commItted to recrUItIng three more members. ThIS actiVIty WIll
begIn In December and It IS antiCIpated that by the end of the
calendar year the membershIp WIll number forty people. A goal of
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100 new members has been targeted by the end of the fIscal year.
In order to achIeve thIS goal, the Board IS plannIng an event to
celebrate the creatIon of the new organIzatIon and to WhICh all
area resIdents wIll be InvIted.
WhIle members of the Board have dIscussed a number of Issues they
would lIke the organIzatIon to address, It was deCIded that the
organIzatIon1s agenda should be developed 10 conJunctIon WIth a
larger membershIp. Based on concerns of the past, It IS lIkely
that thIS neIghborhood wIll focus on streetlIghtIng, crime pre-
vention and parkIng Issues.
As Indicated In the attached workplan (see ExhIbIt A of Attach-
ment V), WMNA IS plannIng an event to celebrate the foundIng of
the organIzatIon to WhICh all neIghbors wIll be InvIted. Addi-
tIonally, In order to ensure the wIdest Involvement and broadest
representatIon wIthIn the neIghborhood, InformatIonal meetings
WIll be held In each of the 12 neIghborhood block areas to elIcIt
concerns from are reSIdents and invIte theIr partICIpatIon in
addressing these concerns. The InItIal informatIonal meetings
WIll form the basIs for developIng the on-gOIng block clubs and
the Issue commIttees WhIch will form the permanent structure for
the organIzatIon. Because of the large amount of staff time re-
qUIred In supportIng and sustaInIng block clubs, only four have
been targeted for establishment by the end of the sIx-month perI-
od. The InformatIonal meetings WIll also determIne WhICh Issues
are most Important to the community and WhICh warrant the es-
tablishment of an Issue commIttee. As IndIcated on the workplan,
three Issue commIttees WIll be operatIonal by June. In addItIon,
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whIle the short tImeframe does not permit the holdIng of a Neigh-
borhood Congress before the end of the fIscal year, staff tIme
and energy wIll be dIrected towards the preparatIon for thIS
neIghborhood-WIde event In the fall of 1985.
In order to enhance the program actIvItIes of the organIzatIon, a
newsletter will be produced and dIstrIbuted to all members four
tImes durIng the remaInIng fIscal year. Because of the desire to
outreach to all resIdents wIthIn the area and to encourage theIr
partIcIpatIon, press releases WIll be sent to the local news-
papers for coverage of the new organizatIon.
As an addItional Information and referral source wIthIn the CIty,
the WMNA WIll be requIred to famIliarIze themselves wIth local
socIal serVIces In order to refer resIdents In need as well as to
make referrals to the CIty'S resIdentIal securIty program.
The budget (see ExhIbIt B of Attachment V) has been developed
based on the gUIdelines that were establIshed for neIghborhood
assocIatIons thIS year except that WMNA has only one organIzer as
opposed to the two approved for the eXIstIng neIghborhood as-
SocIatIons. As the organIzatIon becomes more establIshed, a
second organIzer could be phased In If necessary In subsequent
years.
5. AdmInIstratIon
The adminIstratIon of the organizatIon WIll be the responsIbIlIty
of the Board and the executIve dIrector. A number of the Board
members bring an admInIstratIve expertIse to the organIzatIon
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WhICh wIll be helpful In workIng wIth WMNA staff to ensure com-
pllance In all program and admInIstrative matters.
A detailed procedures manual has been developed by the consultant
for use by WMNA (see Attachment VI).
In essence It provIdes a
"how-to" In the areas of corporate structure, bookkeeping, tax-
fIlIng, audIts, grants management and personnel admInistratIon.
BUDGET/FINANCIAL IMPACT
For FY 1984-85, the CIty CouncIl appropriated $50,450 for the
WIlshIre Montana NeIghborhood AssocIatIon (account number 01-200-
262-000-661). Of thIS amount, $11,400 has been allocated to
consultant fees and start-up expenses.
$39,050 remaIns to be
commItted; therefore, no addItIonal approprIatIon IS reqUIred.
RECOMMENDATION
CIty staff recommends that the CIty CounCIl award $39,050 to the
WIlshIre Montana NeIghbors AssocIatIon from account number 01-
200-262-000-661, contIngent upon the AssOcIatIon's fIlIng of
federal and state tax-exemptIon applIcatIons.
Prepared by: Barbara StInchfIeld, Community Development Unit
Manager
Maggie Kennedy, Grants AdmInIstrator
Department of Community and EconomIC Development
wmnaI
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ATTACHHENT I
REVIEK PLAN OF THE
WILSHIRE-MONTANA ASSOCIATION
DOCUMENTATION NEEDED
I. Board of Directors
A. Membership
1. Representative
List of members wIth ad-
dress, age, ethnIcity, and
professional affiliatIon.
2. Stable
Caples of attendance lists
for each Board meeting.
B. Committee Structure
List of committees and
committee membershIp.
C. Minutes of Board Meetings
Copies of minutes from all
Board meetIngs.
II. Legal Documents
A. By-Laws
Copy of By-Laws
B. Articles of Incorporation
Copy of Articles of
Incorporation
c. Tax-Exempt Status
Copy of Tax-exempt letter
from IRS.
III. Personnel
A. Job Desoiptions
Copies of Job descrIptions
for executive director,
community organizers, and
clerIcal staff.
B. Staff Recruitment
Description of advertising
and outreach for executive
director recruitment.
c. Hiring Procedures
Description of staff
hIrIng procedures.
D. Personnel Policies
Copy of approved Personnel
Policies.
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IV. Program
A. Membership Recruitment
Description of the status
of membership recruitment.
B. Membership Fee Structure
Copy of approved fee
structure.
C. Identification of Issues
Description of the work
done in the identificatIon
of issues to be addressed
by the new organization.
V. Administration
A. FIscal management
Name of bank and checking
account number; name of
bookkeepIng service or
descriptIon of bookkeepIng
procedures If done in-
house; name of accountant.
B. Time Cards
Copy of time card to be
used by staff.
VI. Funding Recommendation
Based on work done with
the Wilshire-Montana
neighbors and on a review
of the above criteria, the
consultant is required to
submit a written evalua-
tIon of whether or not
funding of the newly-
formed neighborhood as-
sociation is advised.
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ATTACH..T\1ENT I I
FiI e: WILSHIRE MONTANA Page 1
Report: unn board address 11~lD-84
Selection: CODE eouals B
FI RST r-wtE LAST twiE ADDRESS CITY/STATE/ZIP HaiE PHlJofE WORK PHlJlE AGE
-------------- ----------~-------- ------------------------ -------------------- ---------------- ------------
Ruth Anzalone 1042 11th St SN, CA 90403 395-2784 70
JiIIlIes Baker 1143 6th St SH, CA 90403 393-6101 59
Jackl! Golmund 918 2nd St SH, CA 90403 394-8883 36
Jean Hobson 906 9th St #D9 !l1, CA 90403 395-3906 458-8757
Pat Kelly 1050 12th St SH, CA 90403 45j-4271 34
Margot Leburg 8S5 3rd St 1315 SH, CA 90403 394-8800 15
Mar 11 yn H!rhn 906 9th St #8 sri, CA 90403 394-4160
Saul Morrison 420 California SH, CA 9C403 394-4425 70
8etty Hueller 2012 Cal dornla SN, CA 90403 453-466S
Barbara-Jo Osborne 1041 10th ST IC SH, CA 90403 393-3903
AfflhatlOns
Anzalone
Baker
Retued librarian, past CSEA pres.
Retired Corporate PreSIdent, duector apt assoc, Chamber
of Commerce,
AdmmistratIve aSSIstant, sierra club
Secretary
Teacher
Retired bookkeeper
Goldmund
Hobson
Kelly
Leburg
Merken
MorrIson
Mueller
Osborne
RetIred Sales Executlve
RetIred nurse
Fmancial Manager--non-proflt orgamzatlOn
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ATTACHMENT III
ARTICLES OF INCORPORATION
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OF
WILSHIRE MONTANA NEIGHBORS' ASSOC1ATION
ARTICLE I
The name of thIS corporabon IS t,.hlshlre Montana NeIghbors' Assocutlan.
ARTICLE II
A. ThIS corporatIon IS a nonorofIt Dubhc benefIt cOl"pOratIon and IS not orgam:ed for the
private gain of any person. It IS orgamzed under the NonprofIt Pubhc BenefIt Corporat1on Law for
charItable purposes.
B. ThIS corporahon's spenf!c and prlma.ry purposes a.re to carry out plans, pohcles, and
act1Vlhes~
1. To enhance, protect, a.nd upgrade the t-hlshlre Montana area of Santa Momca,
Cahforma;
2. To reduce the rate of crIme and the fear of crIme In the vhlsh1re Montana
neIghborhood;
) 3. To encourage the partmpatlon of reSIdents of the WIlshIre Montana neIghborhood In
the a.ffaIrs of the CIty of Santa Momca, the County of Los Angeles, the State of Cahformi, and the
Umted States of Amenca as they a.ffect the mterests of the WIlshIre Montana. neIghborhood;
4. To encourage the Involvement of all the peoples of the WIlshIre Montana neighborhood
In the affaIrs of the area,
5. To plan and conduct commumty Improvement pro,Jects,
6. To attempt to faclhtaie the maIntenance and Improvement of, and where feaSIble the
prOVISIon of, housmg for all WIlshIre Montana mnghbors, !?specIally semor, dIsabled, and low and
moderate Income reSIdents,
7. To InItlate and Improve educa:tlon programs for the reSIdents of the nelghborhaod,
8. To faCIlItate the prOVISIon of arts projEcts and programs for the commumty,
9. To engage generally m commumty actIVItIes and proJects for trle betterment of the
commumty a.nd to assist In the establIshment of any and all commumty orgamzatIOns In the furtherance of
these goals and,
10. To carryon any related or unrelated actIVIty to that descl"1bed In clauses (A) and
(El, except those actIVItIes prohIbIted by law.
ART! CLE 1Il
The na.me and address In the State of CalIforma of thIS corporatlon/s InIhal agent for serVIce of
process IS
---....,
.
H argpt Leburg
855 3rd 8t *'315
Santa Momca, CA 90403-
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ARTICLE IV
A. ThIS corporatIon IS orgarnzed and op~rated exduslvely for charItable and educatIonal
purposes wlthm the meamng of Sectlon 501 (c) 3 of the Internal Revenue Code.
B. No substantIaloart of the actlvl'l:1es of thIS corporatIon sha.ll consIst of carrymg on
propaganda, or otherWIse attemptmg to mfluence leglsla.tIon, and the corporatlon shall not
partIcIpate or mtervene In a.ny Dol1tIcal campa.Ign (lnc:ludmg the publIshmg or dIstrIbutIon of
sta.tements) on behalf of a.ny ca.ndIdate for publIc oUu::e.
C. NotWlthstandmg a.ny other prOVISIon of thes! ArtIcles, the corporahon shall not carryon
a.ny a.ctlvltIes not permtted to be carrled on (a) by a corporatIon exemot from Federallncome tax
under S~ctlon '501 (cl 3 of the lnter-nal Revenue Code of 10'54 tor th!? corresponomg prOVISIon of a.ny
future Umted States Internal Revenue law), or (bl by a corcorahan exempt from Cal1forma. corporate
mcome and franchIse taxes under Ca.hforma Revenue and Taxahon Code 23701d (or the correspondIng
orOVlS10n of any future Cal1fornli revenue or taxabon law.)
ARiJCLE V
A. The property of thIS corporahon 15 U'revocably ctedlcated to cnantable and educa.tlonal
Durposes a.nd no part of the net mcome or assets of thIS corporatIon shall ev~r mure to the ben:'ilt
of any dlreCtor, offIcer, or prIvate shareholder thereof or 'to 'the benefIt of any prIvate person or
mdIvldual. Upon the dIssolutIon or wmdmg up of the cc;fproahon, ItS assets remamIng after
payment, or prOVISIon for payment, of all debts and hablhtIes of the corporatIon shall be
dIstrIbuted to Wes1:s1de Independent SerVIces to the glderly or to such nonprofIt fund, four'ldatlon or
corporatIon WhICh IS orgamzed and operated exclUSIvely for chantable or educahonal ourtloses and
WhlCh has !?stabhshed lts tax ex empt status under Sectlon 501 (cl 3 of the Jnurnal Revenue and
TaxatIon Code.
B. ThIS corporatIon's assets, mc.1udtng any assets held In trust, shall be dlsoosed of 10
such manner as may be (a) dIrected by decree of the SuperlOr Court of the county 10 WhICh the
corDoratlon has Its prmCloa] offIce, upon pelltlon ther:>for by the Attorn:>y General or by a person
concerned 1n the hquIdahon and dIssolutIon, In a proceedmg to WhICh the Attorney GeneralIS a
oarty; or (b) WIthout decree of the Supenor CouJ"t, subject to the rIghts of persons cancerned 1n the
Qlssoluhon, If the Attorney General makes a wrItten waIver of obJechons to tne chsoosl'tlon.
ARTICLE: VI
The corpora hon may aamIt persons to memberShIp subJ~ct to the terms and candI tIons set ;:o..th
ll"I'the By-laws.
DA TED'
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I 1984
)( I {/\ _......11 (\ I
~ ',JJ L{/1)- J(
Ma.rtDt Leburg, Inccroora'tor
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ATTACHMENT IV
BYLAWS OF WILSHIRE: MONTANA NE:IGHBORS' ASSOCIATION
(A Cal1forma NonprofIt Public BenefIt Corporation)
ARTI CLE I
IdentIty
SectIon 1. Name
The name of thIs corporatIon shall be T"hlshlre Montana NeIghbors' Assoc1a.tlon.
SectIon 2. Purposes
A. Whereas bUIldmg a commumty organizatIon IS the way for neIghbors to partIcIpate fully In the
democratic process and msure a safe and secure commumty m whIch to live and wor\(.
E. Therefore the WIlshIre Montana NeIghbors' ASSOCIation must umte and organize so that all people,
regardless of age, race, sex, sexual preference, dlsablhty, or Income level, can worl< together to
Improve and control deCISIons that affect the quality of hfe m the community.
Sechon 3. GeographIcal Terrltory
A. The geographIcal terrItory of the orgamzatlon shallmclude the land In the CIty of Santa Momca
from Ocean Avenue to 21st Street between Montana Avenue and WIlshIre Boulevard and shall be called
the \.hlshlre Montana NeIghborhood.
E. The Orgamzatlon's three areas are dIVIded as follows.
1. From Ocean Ave to Lmcoln Boulevard between Montana Ave and WIlshIre Eoulevard.
2. From Lmcoln Boulevard to 14th St. between Montana Ave and WIlshIre Boulevard.
3. From 14th St. to 21st St. between Monta.na Ave and WIlshIre Boulevard.
Sechan 4. Qfflces
The prmclpal offIce of the corporatIon 10 the State of Cahfol'ma shall be located In the CIty of
Santa Momca, County of Los Angeles. The corporahon may have such other offIces WIthin the CIty of Santa
Homca as the Board of DIrectors may determ1Oe.
ARTICLE II
MembershIp
SectIon 1. Votmg Members
Any person who subscrIbes to the purposes and rules of the corporation and who reSIdes 10 the
l,hlshlre Montana NeIghborhood, upon payment of an annual membershIp fee, may be a votmg member of the
orga.mza. tlon.
wmn bylaws 10-84
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Sedlon 2. Non VotIng Members
A. Orgamzatlons--any busmess or other orgamzatlon located WIthin the r..hlshlre Montana NeIghborhood
whIch subscrIbes to the purposes and rules of the corpora.tlon upon payment of an annual membershIp
fee, may be a non-votmg member of the corporation.
B. Non-resldents--Any other person, business, or orgamzahon who has any Interest m the affaIrs of
the Wllshlre Montana NeIghborhood and who SUbsct-lbes to the purposes and rules of the corporatlonf
upon payment of an annual membershIp fee, may be a non-votmg member of the corporatIon.
Sechon 3. MembershIp Fee
An annual fee for each category of membershIp shall be recommended by the Board of DIrectors and
ra'hfled at the annual Commumty conventlOn, except that the Inltla.l Board ma.y mstltute such fees up to the
tIme of the fIrst Annual ConventIon.
SectIon 4. Termma.tlOn of MembershIp
Any member actmg In OppOSItIon to the purcose and rules of thIS orgamzatlon may have hIS or her
membershIp terminated by a 2/3 vote of the Board of DIrectors, If the board proVldes a faIr and reasonable
procedure for dOIng so.
ARTICLE III
ANNUAL COMMUNITY CONVENTION
Sectlon 1. General
All powers derIve from, and ult1mate authorIty reSIdes 10, the membershIp at the conventlon.
ResolutIons, purposes, and dlrec:tlOn for the organizatIon WIll be voted upon at each Annual Community
ConventIon.
Sectlon 2. Purposes
The purposes of the Annual Commumty ConventIons are'
A. To approve resoluhons, purposes, and dIrectIon of the orgamza.t1onj
B. To elect representatives to the board of DIrectors;
C. To approve the membershIp feei
D. To adopt, amendt or repeal the Bylaws and/or Artlc:les;
E. To undertaKe such other actIons WhlCh are approprIate to the naturE! of the orgamzatlon.
Sectlon 3. NotIce
NotIce of the tIme and place WIthin the CIty of Santa Momca of the Annual Conventlon shall be
posted Drommently throughout the c:ommumty, and shall be milled to the membershIp, at least twenty-one days
beforehand by actlon of the Board of DIrectors.
SectIon 4. Quorum
A. A quorum for the annual Commumty ConventIon shall be at least two-thIrds of those votmg members
who shall have SIgned Into the conventlon on that day.
wmn bylaws 10-84
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B. In the case of Board of DIrectors eledIOnSt a quorum shall be two-thIrds of those vot1Og members
of the approprIate area of the orgamzatlon who have SIgned Into the ConventIon on that day.
SectIon 5. Vot1Og
All Achons shall reqUIre a passmg vote of no less than a SImple maJOrIty of those present or of a
quorumJ whichever IS hlghestJ except 10 the case of amendments to the Bylaws or ArtIcles.
SectIon 6. Govermng Procedures
The Annual Commumty ConventIon shall be sub,tect to the procedures of the most recent edition of
Roberts' Rules of Ordert RevIsedJ and Rules of the Day to be determIned by the Board of DIrectors and
approved by the members of the ConventIon.
ARTICLE: IV
BOARD OF DIRE:CTORS
SectIon 1. Powers and DutIes
Sub,tect to the powers of the members, the prOVISIons of the CalIfornIa Non-ProfIt Coroorabon LawJ
or as hereIn set forth, all corporate powers of the corporatlOn shall be exerCIsed by or under authorIty ofJ
and the busmess and affaIrs of the corporahon shall be controlled bYt the Board of DIrectors. WIthout
lImlhng the generalIty of me forego1OgJ the Board of DIredors shall have the follOWIng powers
A, To select and remove all the offlcersJ agentsJ and employees of the corporahonJ prescrIbe such
powers and dutIes for them as may not be inCOnSIstent WIth lawt WIth the ArtIcles of
IncorporatIonJ or the Bylawstand fIX theIr compensatIonJ If any I
B. To conductt manage, and control the affaIrs and bUSIness of the corporations, and to make such rules
and regulahons not inCOnSIstent WIth lawJ wl'th the ArtIcles of IncorporatIon, or the bylaws, as
they may deem best.
c. To change the prmCIpal offlce for the transactIon of busmess of the corporatIOn from one locatIon
to another WIthIn or outSIde the CIty of Santa Momca, County of Los Angelest State of CalIforma.
D. To carry out the purposes of the organIzatIon,
E. io coord mate ImplementatIon of the resolutlons of the organIZatIon,
F I To establIsh and dIssolve commIttees as necessary,
G, To receIve reports from membersJ staffJ commItteeSt and others as approprIate,
H. To recommend annual membershIp fees ami instItute the fees untIl the fIrst Annua.l ConventIOn;
I. To approve organIzahonal expendItures and budgets,
J. To have such other powers and dutIes as prescrIbed by the members or these Bylaws;
K, To amend the ArtIcles of Incorpo'e-tlon and Bylaws until the fIrst Annual ConventIon.
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Sechon 2. Quahflcahons
A. Each Board candidate must be a votmg member of the corporation and reside In the area sthe seeKs
to represent except that the Inlhal Board members represent the entire neighborhood.
B. No Board candidate may hold elective pubhc office.
Sectlon 3. Composltlon and Term
A. The Board of Dlrectors shall be composed of no more than 15t and no less than 9 votmg members.
B. Board members are elected for terms of one year.
Section 4. ElectIons
A. Each area of the orgam:zatlOn shall ele!:t up to 5 representahves to the Board.
B. Candidates to the Board of Directors shall be nommated by written nommahon flIed With the Board at
least thirty days before the Annual Commumty Conveni:lOn and SIgned by at least ten reSidents of i:he
area. the candidate seeKs to represent.
C. Electlon of Board members shall taKe place at the Annual Commumi:y Convention except In the ca.se of
vacancies.
D. Each votlng member of an area shall vote for up to five candidates from thelr area.
E. The five candidates from each area wlth the hlghest number of votes shall be members of the Board of
Dlrectors.
Sectlon 5. Termma.tlon
Any Director who mlsses more than three consecutlve meetmgs Without good cause may have hiS or her
dU"ectorshlp terminated by two-thrlds vote of the Boa.rd.
Sectlon 6. Vacancies
Vacancies on the elected Board of Dlrectors may be fllled by a candldate from the appropnate area by a
two-thirds vote of the remaining dlrectorSt and each director so elected shall hold offlce until her or hlS
successor IS elected a:t the Annual ConventIon or at a speCial meetmg of members called for that purpose.
Sectlon 7. Place of Meetmgs
Meetmgs of the Board of Directors shall be held 10 Sa.nta Momcat Cahforma, at a convement place
deslgnated for tha.t purposet by either Chalrperson or any three dlrectorst as the case may bet call1ng the
meetmg.
Sectlon 8.. Regular Meetings
The Board of Dlrectors shall meet regularlyt at lea.st once a month. Adequate procedures for notice of
each meeting must be approved by the Board at Its first meeting followmg each Annual Convention.
wmn byla.ws 10-84
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SectIon 9. Speoal Meetmgs
SpecIal meetIngs of the Board may be called for any purpose except electIon or removal of members of the
Board of DIrectors by eIther ChaIrperson or by any three du"ectors. Forty-eIght hours nohce IS requIred to all
dIrectors, to be made by telephone, telegraph, hand dehvery, or In person. Four days notIce IS reqUIred If made
by fIrst' class mall.
Sectlon 10. QUOl"Um and Vote
A. A maJOrity of the DIrectors shall be necessary to constItute a Quorum for the transaction of bUSIness.
A maJOrIty of the dlrectors, In the absence of a quorum, may adJOurn from tIme to time, but may not
transact bus1Oess. Once a quorum IS present at a meetmg, the dIrectors present may contmue to
conduct bUSiness durIng the scheduled hours of the meetmg notwlthstandmg any WIthdrawal WhICh leaves
the meetIng In a sub-quol"um status.
B. The achon of a maJOrIty of the dIrectors present at any meetIng at WhICh there IS a quorum, when duly
assembled, IS vahd as a~ corporabon act, except as otherWIse speCIfIed 10 these Bylaws.
ARTICLE V
OFFICERS
SectIon 1. Descrlphon
The corporate offIcers shall be a Chalrperson, a Vlce-ch.urperson, a Secretary, and a Treasurer. No
two or more of these offIces shall be held by the same person.
SectIon 2. Election
At Its second monthly meetIng after the Annual Commumty Convention, the Board shall elect the
offIcers named above from among ItS members and they shall serve a.s the ExecutIve CommIttee of the Board,
Sectlon 3. Removal and ReSIgnation
A. Any offIcer may be removed from offIce by a maJOrIty of the dIrectors at any tIme, at any meetIng of the
Board, by a two-thIrds vote.
B. Any offu:er may reSIgn at any hme by gIVing WrItten notIce to the Board of DIrectors or to the
ChaIrperson or to the Secretary of the CorporatIon. Any such reSIgnatIon shall taKe effect at the da.te
of the receIpt of such notIce or at any later tIme speCIfIed thereIn; and, unless otherWIse speCIfIed
there1O, the acceptance of such reSIgnatIon shall not be necessary to maKe It effectlve.
SectIon 4. VacanCIes
A vacancy In any offIce beca.use of death, reSIgnatIon, remova.l, dlsqua.lIflcatIon or a.ny other cause shall
be fIlled by a maJOrIty vote of the Board of DIrectors for the une:{plred portion of the term.
SectIon 5. ChaIrperson of the Board
The ChaIrperson shall preSIde or delegate another person to preSIde at all meetIngs of the Board, the
ExecutIve CommIttee and at the Annual Conventlon. Slhe shall have such other powers and dUlles as may be
prescrIbed by the Board of DIrectors or these Bylaws.
wmn bylaws 10-84
pa.ge 5 of 8
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Sectlon 6. V1ce-chalrperson of the Board
The Co-chairperson of the Board shall possess the powers and discharge the duties of the chairperson m
the latterls absence or Inablhty to so perform. S/he shall have such other powers and dutIes as may be
prescribed by the Board of Dlrectors or by these Bylaws.
Section 7. Secretary
The Secretary shall attend to the follOWing:
A. Book of Mmutes. The Secretary shall keep or cause to be kept, at the prmclpal office or such other
place as the Board of Dlrectors may dlrect, a. book of mmutes of all meetmgs and act10ns of directors,
comm1ttees of d1rectors, and members, w1th the t1me and place of holding regular and speclal meetmgs,
and 1f speCial, how authorlzed, the notice given, the names of those present at such meetmgs, the
number of members present or represented at members' meetmgs a.nd the proceedmgs of such meetmgs.
B. Notices, Seal and the Other Dutles. The Secretary shall glve, or cause to be glven, notice of all
meetmgs of the members of the Board of DlrectOs required by the Bylaws to be gIVen. The Secretary
shall keep the seal of the corporatIon 10 safe custody, and shall have such other powers and perform
such other duties as may be prescribed by the Board of Dl/"ectors or by the Bylaws.
Section &. Treasurer
The Treasurer shall be the chlef flnanC1al off1cer of the corporatlon and sha.ll attend to the followmg.
A. Books of Account. The Treasurer shall keep and mamtam, or cause to be kept and malntamed, adequate
and correct bool<s and records of accounts of the propert1es and busmess transact10ns of the
corporatlon, mcludmg accounts of 11s assets, habll1hes, receipts, dlsbursements, ga.ms, losses,
tapltal, retuned earnings, and other matters tustomarlly Included 10 fl~C1il statements. The booKs
of account shall be open to lnspectton by any director at all reasonable hmes.
B. DepOSit and D1sbursement of Money and Valuables. The Treasurer shall depOSit or cause to be deposlted
all money and other valuables 10 the name and to the credit of the torporahon wlth such deposltorles
as may be deSignated by the Board of Dlrectors. shall d1sburse, or cause to be d1sbursed. the funds of
the torporahon as may be ordered by the Board of Dlrectors, shall render or cause to be rendered, to
the E:xecuhve Commlttee and Dlrectors, whenever they request It, an account of all of hiS or her
transactions a.s chief fmancul officer and of the fmanClal condltlon of the corporation, and shall
have other powers and perform such other dutles as may be prescribed by the Board of D1rectors or the
Bylaws.
C. Eond. If requlred by the Board of Directors, the Treasurer shall give the corporation a bond 10 the
amount and wlth the surety speCIfied by the Board for faithful performance of the dubes of her/hls
offlce and for restorahon to the corporatlon of all ItS booKs, papers and vouchers, money, and other
property of every I<1nd In her/hls possession or under her/hiS control on her/hls dea.th, reslgnatlon,
retirement, or remova.l from oHu:e.
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ARTICLE VI
8X€CUTIVE COHMITTe:e:
Sectlon 1. Compos1tlon
The Execut1ve CommIttee shall be composed of the oHlcer's of the Boar'd.
Sectlon 2. Powers and Duhes
A. To meet as necessar'Y and be r'esDonslble for the day-to-day decIsIons and operahons of the organlZatlon
between BOill'd meetIngs.
B. To refer to the Boa.rd all substa.nt1al1ssues whlch have not been prevIously addressed by the convent1on
or the Board
C. To report all dec1s1ons on a monthly basls to the Board.
D. To serve as adv1sor to the subsequently elected Board and Executlve Commlttee for a penod of two months
follOWIng the Annual Commumty Convenhon, and
E. To have such other powers and duties as ma.y be prescrlbed by the Eoa.rd.
ARTICLE VII
ACTION COMMITTEES
Sectlon 1. Authorlza t10n
A. Any group In the commumty seel<mg to deal w1th a commumty mterest or concern may act as a comm1ttee
of the orgamzat1on upon passage of a resolut1on to tha.t effect: at: the Annual Commumty conventIon.
B. The Board may glve Intll'rlm author1zatlon to a commIttee by a 'two-thlrds vote.
SectIon 2. Formahon
A. CommIttees are encouraged to be self-formmg and
B. MembershIp In a committee 15 open to any member of the orgamzat1on or res1dent of the commumty.
SectIon 3. Operahon
Establ1shment of a committee requ1res.
A. A reasonably speClflc plan as to how the commIttee shall be governed;
B. A reasona.bly speCIfIc plan of progra.ms and actlvltles,
c. A reasonably speClflc pla.n of fmanClal operatIon; and
D. SubmISSIon of regular reports to the Eoard.
ARTICLE: IX
MISCELLANEOUS
Sechon 1. Records
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The corpo.tlon shall mamtam adequate a.nd CON'ect accounts, booKst a.nd records of 1ts busmess and
propertIes. All such bookst records, and a.ccounts, a.s well as mmutes of the Board of Dlrtctors, the ExecutIve
Commltteet and all other commIttees of the Board, shall be I-<ept In the city of Santa. Momca In a place desIgnated
by the Board of Directors or at the prlnClpal place of buslness of the corporation.
SecttOr;1 2. Inspect10n of Records
All bool-<s and records of the corporatIon shall be open to Inspection of the DIrectors and members of the
corooratIon at any reasonable tIme durmg offIce hours.
Section 3. lnspechon of Bylaws and Articles
The orlgmal or a. copy of these Bylaws, as amended or otherWise altered to datet certified by the
SecretarYt shall be open to mspec'hon by the members and directors of the corporation.
SectIon 4. ChecKs and Drafts
All checl<st drclftst or other orders for payment of money 1ssued In the name of or payable to the
corpora.tlon shall be Signed or endorsed by any two of the follOWing Chall'perSOnt Co-chalrperSOnt Treasurert
Secretary, or the member or staff delegated by the Board.
Section 5. Contracts
The Board of DIrectors, except as 1n the ArtIcles of Incorporat1on or Bylaws otherWlse prOVided, may
author1ze any officer or off1cerSt agent or agents, to enter Into any contract or execute any Instrument 10 the
name of .nd on behalf of the corporation. Unless so a.uthorlzed m writIng by the Board of Directors, no offlCert
agentt or employee shall have any power 01' authOrIty to bind the corporahon by any contract or engagement, or to
pledge Its credit, or to render It hable for any purpose or to any amount.
SectIon 6. Annual Report
The Directors shall cause to be presented to members at the Annual ConventIon a current balance sheet
together WIth a current statement of Income and expenses. Such fmanclal statement shall be certified by the
Chairpersons or Treasurer.
Sectlon 7. Fiscal Year
The fiscal year of the corpora.hon shall run from July 1 through June 30 of eath year.
ARTICLE!: X
AMENDMENT OF ARTICLES OF INCORPORATION AIm BYLAWS
Articles of IncorporatIon and lor Bylaws may be amended at the Annual ConventIon or at a speCIal meetIng
of members called for that purpose by the Board of Directors (except that the 101'bal Board of Directors may
amend the Articles of IncorporatIon and/or Bylaws With a two-thirds vote of a quorum. Such amendment by the
Initial Board requires notice at the prevIous regular meeting of the Board). A two-thirds vote of a quorum of
votmg members (quorum equals two-thirds of those votmg members who shall have Signed mto the annual conventIon
or speCial meetIng on that daylt prOVided that 40 votIng members or two thirds of the Board of Directors have
first petitioned for such amendmentt and prOVided that nohce by mall has been given to the membership at least
thirty-fIve days prior to the Annual ConventIon or speCIal meetmgt shall be reqUired to so amend.
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11-8
JAH 8 1985
CITY OF SANTA MONICA
INTER-DEPARTMENT MEMORANDUM
DATE:
January 8, 1985
TO:
Mayor Pro Tempore Je~nIngs
FROM:
City Clerk
SUBJECT:
City Council MInutes Re WIlshire-Montana Neighborhood
Association
As requested, attached are transcrIpts of City Council dIScussIon
of the above subJect at the 1984-85 budget meetings on Ju~e 12
and June 19, 1984.
Copies have also been placed before each Councllmember for theIr
conVenIence.
AMS:dms
Attachments (2)
CC: ~ayor and Councllnembers
1:n-to. y-e
11-8
JA~ 8 1355
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TRANSCRIPT OF PORTION OF MINUTES OF CITY COUNCIL MEETING HELD
JUNE 12 ~ 1984
ITEM 11-A: RECOMMENDATION TO APPROVE THE 1984-85 COMMUNITY
DEVELOPMENT PLAN BY ADOPTION OF RESOLUTION, APPROVE HUD
SUBMISSION AND AUTHORIZE CITY MANAGER TO SUBMIT TO HUD
ThIS transcript contains only the dIScussIon and actions relating
to the Wilshire/Montana Neighbors ASSOGlation dUrIng Item 11-A.
em Conn:
I would lIke to move that we include in
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thIS program a set aSIde of $78,378 for the establIshment of a
neIghborhood organizatIon in the Wilshire-Montana geographic area
and direct staff to develop a strategy for the development of a
non-profIt community organizatIon In that geographic area.
Mayor Edwards:
Is there a second?
Heari~g none, it
falls for lack of a second. Any other amendme~ts? CouncIlmember
'--
Zane.
em Za!'le:
I do~tt have an amendment, but I would to
say that I intend, I would lIke to see US develOp, I thInk the
$78,000 is too much for start up costs. I think that reflects an
established mature organizatIon and I am gOIng to want to look at
what is an appropriate allocation and have a suggestIon for next
week.
So my faIlure to second that does not reflect a
phlllsophical dIfference but a dIfference as to a speCIfic
allocation.
Mayor Edwards:
The motIon died for lack of a second, is
there any other amendments or a~y other diSCUSSIon before we call
the roll on the main motion. Mr. Conn then Mr. Epstein.
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Cm Conn: I would s lmply llke to say it can be
argued that in fact, start up costs for a community organlzatlon
are hIgher than on-golng costs once the organlzatlon has matured.
I think that ought to be taket"J into consideration as people
conslder it thls week.
END OF DISCUSSION ON WILSHIRE-MONTANA NEIGHBORS PORTION OF ll-A
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~.'9Y~-,~ ~.
TRANSCRIPT OF PORTION OF MINUTES OF CITY COUNCIL MEETING HELD
.JUNE 19, 1984
ITEM 2. PUBLIC HEARING AND ADOPTION OF
BUDGETS FOR CITY COUNCIL, REDEVELOPMENT
AUTHORITY
FISCAL
AGENCY,
YEAR
AND
1984-85
PARKING
This transcript contaIns only the dIScussion and actIons relatIng
to the WIlshire/Mo~tana NeIghbors ASS~latIon durIng Item 2
,.,
Mayor Edwards:
Mr. Conn, you had some amendme~ts?
Cm Conn:
Yes, I bel i eve thi s is the appropr iate
tIme for us to do some adds for SOCIal serVIce and community
development plan.
I'll tell you what I'd like to do, I'd like
to deal with the cost-of-living and the New Start and the BIrth
Ce~ter and the WIlshire-Montana Neighbors.
I'll be dam~ed if I
don't have any of those numbers right in front of me.
Mayor Edwards:
Do you want to do one motion or all in
one motIon?
Cm Conn:
Not all In one motion.
Mayor Edwards:
Why don't you callout the ones you want
to do IndIVIdually and there may be some agreement a~d there may
not.
em Conn:
I'll
move
the
that
we
fund
the
~ilshlre-Montana Nel~hbors AssociatIon at, what IS the total?
CIty Manager:
The total is $50,450.
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em CO'1n: That IS the fIgure, and adopt the
workplan that has been presented.
MPT Press: Second.
Mayor Edwards: It has bee'1 moved and second ed ,
discussIon?, Mr. EpsteIn.
ern EpsteIn:
I
would
move
an
ame'1dment
to
th$
amendment to approprIate the fIrst $161000 and then reVIew at the
m1d-year as to whethe" we want to do anyth1n~ add1t1onal. ~
em Reed: Seco'1..9... ^'" "'fi. .3
em EpsteIn:
Let me comme'1t on that If I may?
Mayor Edwards:
Let me ask the maker of the motIon If
that IS acceptable?
Cm Conn:
I would like to see us put the lIne item
1 n and then follow the workpl an WhICh effec tl vely accompl ishes
that.
Mayor Edwards:
Okay, It IS not acceptable, do you want
to pursue your amendment.
Cm Epstein:
Yes I would. I would like to comment on
it. We are very close to the lImIts of our Gann authorIty. The
adding on of all the things that I thInk are about to get added
Ol1 J WIll br Ing us even closer to that author i ty J I thI nk It IS
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lrresponsi ble to add very much on WI thout makIng correspond i ng
reductions somewhere else In the budget. So I want to take a
very c aut 10US approach to add-ons. No matter how worthy the
project. Secondly, I have been opposed and contInue to be
opposed In ge~eral to the fundIng of neighborhood organIzatIons,
but I thInk It is a matter of equI ty, if you are gOIng to fund
one, you are pretty much have to fund equlvllent organIzations in
each ne I ghborhood . I thl nk the $16,000 would carry us through
November, we would know whether JarVIS IV IS passIng, we would
know pr obably what our new Gann authority 1 s goi ng to be, we
would have a clearer Idea whether we are spendl~g up to budget in
other areas, I thI1k that that amount is wIthIn limits of
responsibIlIty. I thInk that the $51,000 plus the cost of living
that I think IS comIng plus the other thIngs I think are cornIng,
we are going to be scrapl'1g the ceilIng and I Just don I t think
that is responsIble.
Mayor Edwards:
Call the roll please.
A'1Y other diSCUSSIon on the amendment?
Conn:
Epstein:
Jennl~gs:
Aye
Yes
Yes
Mayor Edwards:
amendment (to em Conn).
Walt, wait, this IS the ame~dment to your
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Cm Conn:
the amendment.
Mayor Edwards:
Cm Conn:
City Clerk:
Cm Conn:
Cm Epstein:
Cm Jennings:
Cm Press:
Cm Reed:
em lane:
Mayor Edwards:
CIty Clerk:
Mayor Edwards:
Mr. JennIngs.
Cm Je"1nIngs:
e
You didn't address It as the amendment to
It is an amendment to the amendment.
Will you start over again, the"1?
Yes, I wIll call the roll agaIn.
No
Yes
Yes
No
Yes
No
No
The motIon falls.
Back to the orlgl"1al motion, dIScussIon?
(f~ J)
(~ rY\tP~/3,J
first of all, have we added anything to the budget that costs
Yes, I would lIke to know from staff,
money yet tonight?
City Manager:
Not to my knowledge, no.
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Cm JennIngs: Seco~dly, exactly how much is there
between your recommended budget, including the recommended
changes that you have got 1n the resolut1on and the Gann lim1t?
Ci ty Manager: There are two dIfferent Gann limits as
Councilmembers are aware, there IS $192,000 avaIlable in general
purpose Gann authorIty and an add~tlonal $488,000 solely lImIted
to expenses eligible to the public safety override.
Mayor Edwards: So if these pass, then we would have to
do an accountIng and If we were over then there would have to be
some adjustments ~n other aspects of the budget.
CIty Manager:
That ~s correct.
Cm EpsteIn: Further questIons of staff. The staff
comme~t on the ImplicatIons of addIng thIngs which appear lIkely
to be on-going commlttments in the lIght of our antIcIpated
fiscal SItuation over the next two years.
CI ty Manager: Very dell berately, our pas 1 t Ion to put
the princIpal emphasis of this years budget on capital
programmIng. Two reasons, one our commlttment to meet the need
of the City as we saw It, but seco~dly given one JarVIS and two
the fact that thIS IS a year WhIch the CIty has been quite
fortunate. It is unlikely that your budget is gOIOg to be as
easy to adopt for you next year. You have two major thIngs
outsIde of your control to a certaIn extent. One IS that our
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country has a bIpartIsan tradItion of having the economy go to
hell after a presIdentIal electIon, and the sales tax growth we
have experienced, bUSIness lIcense tax growth IS posSIbly not
going to be qUIte as robust in the year FIscal 85-86. So your
revenues may be down. Secondly you have probably your most
diffIcult year in anybodyt s recent memory in collective
bargaining. You have FIre contract, PolIce contract, contract
with the Teamsters, contract wIth the MTA, contract wIth the MEA,
all up for renegotiatIon. I thl.nk regardless of how firm the
Council wIshes to approach those negotiatIons, obviously there
WIll be substantial cost increases that will have to be accounted
for In future budget years. So the addIng on of addi tional
on-gol~g expenses bInd you In ways WhIch are gOIng to be
d 1 fflcul t, and all of thi s assumes that eve!1 lf you got the
revenue, you goi~g to have the Gann authorIty In WhIch to spend
1 t, and wi thout questIon, you are goi ~g to need an add 1 tion to
your pub 1 ic safety overr Ide, a ge~eral purpose for capl ta 1 Gann
overrIde in order to even meet your eXIstIng oblIgatIons for next
year. No less on-goIng obligatIons, so we feel both for JarVIS
related reasons for prudent management thIS year and also ~ot
puttIng thIS CouncIl and future COUYlclls in the very diffIcul t
pOSItion in future years, that extreme prudence should be
exercIsed in addIng on annualized expenses that wIll occur over
and over again.
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Mayor Edwards:
Epste1n.
Any other discussion on the motion? Mr.
em Epstein: I th1nk in the light of that, I would
again urge the Council to caut1on, I mean there are alot of good
th1ngs out there and alot of things 1n the abstract are good
things, I think are about to be proposed. I think the discussion
does not end, to put 1t abstractly, whether any particular item
IS a good thi~g. It is compared to what, and 1S also, where is
it going to put us 1n future years, the fact that we may be
SUbJect to pressure, or there may be elect10ns coming up, or a
whole variety of factors, I th1nk we have a duty to be fiscally
prudent a'1d after all you guys might WP1, and if that happens,
the problems are gOlng to be squarely 1n your laps If we over
obl1gate ourself for future years.
Mayor Edwards:
comment on th1S?
Ms. Press, you wanted to respond, had a
MPT Press: I think the Issue here IS the one that
conceded by Councl1member Epstein as one of equIty, the fact that
we have developed a policy and the staff has developed a program
whereby there IS in the exi_stL."1~ ne1ghborhood organizations, a
serIOUS attempt to equalize the City resources amongst them. We
st111 have to deal With the fact that we do have a substantial
area of the city that has not had any kind of meanIngful
opportuni ty up to th1 S POPl t to see to analyze and corne forth
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with Its potential for the development of a sImilar neighborhood
organizatIon as we presently have In other neighborhoods. I
thInk that it IS with all of the fInancIal cautIons, the fact
remaIns, whIle some fundIng has been put Into thIS area In the
past, there has not been any kind of plan, such as the staff has
lain before us thl s evenIng, WI th what I thInk are substantial
requIrements and substantial restrictions for that have to be
adhered to before the second phase of the funding is implemented.
I thInk that we have had, addressed the issue of streetlights In
this area, we have addressed the issue of crIme wIth some cIty
fundIng wIth a sort of part tIme organizer who was not really
under the full tIme purVIew of the staff but was connected to
WISE and was not focused entirely on seeIng on developIng a
meaningful pIcture about what the other issues besides
streetlIghts a~d crIme, which of course IS allover the city, but
we did focus In this partIcular area because of the predomInance
of seniors. So I thInk that In all sense of faIrness for the
CItIzens that live in this area there needs to be an educatIon
process and an outreach process, the end resul t may be not as
substantial as we have seen in other neIghborhoods, but I
certainly thInk that they deserve to have an equal opportunIty to
attaIn a recognitIon of thIS CouncIl of the needs of that area.
Mayor Edwards:
Mr. JennIngs.
em Jennings:
coming fi seal year,
I would lIke to poi~t out that during the
peopl e will corne to us and wi 11 ask for
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addItIonal money, or somethIng or another wIll come up where we
will need to spend more money. We have only got $192,000 here to
go if we gIve this money plus the ChIldbirth Center plus the
cost-of-li v lng plus the Wellness Communi ty J some part of what
they asked for, you will have used up almost all of the $192,000.
That means that when anything comes up durIng the year, you will
be hardpr essed to figure out where It is gOl1"lg to come from to
spend the money. If you want to leave any dIscretion, any
ablli ty, somewhere throughout the other 12 months of this year,
unless you want to dip Into appropriated reserves someplace,
which I thought we were holdI~g for capital and things lIke that
for the future, unless you want to start dipping into those in
terms of the general tax revenue that IS not approprIated Into
reserves, there won't be any left If we vote all these additional
motions. So I suggest we should take into account stuff that is
lIkely to come up durIng the next fiscal year that we will want
to spend money on too. If we are not gOIng to be deleting
somethIng In the budget, It doesn I t look lIke we are gOIng to,
there Just Isn't gOIng to be any later on in the year.
Mayor Edwards:
Mr. Zane.
em Zane: I understand that there are in the
Gan~able reserves, both general fund Gan~ed reserves, and captlal
Ganned reserves, Mr. Alschuler. What is our Ganned reserves?
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C1ty Manager: It Just went up by $3,000,000 an hour or
so ago, but while the staff 1S calculatIng that let me respond
specIfIcally in antIcIpatIon to the ki~ds of concerns that have
been raised, there IS also a $311,000 appropr1ation to a reserve
in the operating budget for this year, undes1gnated. So there 1S
an add1 tional $311,000 In the budget, which 1 s a fa 1 r ly minor
amount given the general tendency of the Council to appropr1ate
betwee'1 $400,000 - $600,000 annually due to unforeseen things
during the course of the year. So you wouldn't get dow~ to zero
1n terms of your fleX1bllity, but you are certaInly gOIng to be
below your hIstorIcal rate of addItional appropr1atIons subJect
to Gaon during the year.
Cm ZaYle:
optlO'1 during
reserves.
In my quest1on, we would stIll have the
the year of making approprlat10'1S from GaYlned
City Manager: If you wish to break the pract1ce of
maintaining a balanced budget withi'1 the operatIng account..
em Zane:
that tIme?
But that IS a deCISIon we could make at
City Manager:
decision.
Yes, you Will have the right to make that
Mayor Edwards: We are st III on the mot ion, Mr. Conn t s
motion, if we ca'1 direct our remarks to the motIon.
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Cm Epstein: Again, I agree with Councilmember
JennIngs pOInt, if you have something like thIS, it comes back
year after year, if we fi nd oursel ves I n the si tuati on a year
from now of saying we are gOIng to start cUttl~g. ThInk that the
social serVIce decisIon maki~g thIng IS dIffIcult now, to commIt
to thIngs that are long term oblIgations, POlItIcal obligatIons
of the CIty, is very very dIfficult to cut them off, I plead with
the members of the CouncIl to be responsIble, sometimes It is
necessary to say no, and I don't hear any Inclination from very
many of my collegues to do that and I think It IS a dIsservIce to
the people of thIS city not to say no given how close we are to
scraping the edge, gIven the lIkelihood that the situatIon next
year is gOIng to be a hell of a lot tighter than it IS now.
Cm Corm:
Can we vote on this?
Mayor Edwards: Yeah, I want to say somethIng. I suppose
this is that part of the budget that allows for speaches to be
made. I am somewhat concerned, I hope that we conduct our
elections at election time and not at budget tIme, the fact is
we, one there IS alot of assufTlptions beIng mad e, we WIll go
through the rest of the budget, I don't thInk anyone IS gOIng to
adopt a budget that IS Imprudent. I fInd It somewhat i~terestlng
that we we~t through about 45 mInutes of dISCUSSIon how we can
delete a utilI ty, or taxes from $200,000 and somebody raises a
motIon to assist a social serVIce program and suddenly there IS
major concerns for the budget. I thInk that everythi~g that 15
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being said is correct, I think It IS beIng taken out of co~text.
Any add 1 tlons are gOIng to certaInly have to be balanced WIth
appropriate reductIons where there IS a co~se~sus.
I might
remind Mr. Epstein that hIS addItional goal to begin a POlICY of,
to us e hIS words, wean soc ial serv Ice agenc ies from the CI ty
budget passed WI th unanimous consent.
So I thInk your remarks
are well taken and I thInk the Council agreed with what you are
saying when It adopted your add i t lanaI goal.
I thInk thIS is
probably not the time to suddenly talk about saving the city
budget when we are talkIng about $115 mill ion budget and an
add-on of a few hundred thousand dollars at the very most, when
there are stIll alternatives and a major part of the budget yet
to go. Any additIonal comments on Mr. Conn's motIon?
em Conn:
I have one fInal comment.
I am not
concerned about our Gann lImItation at thIS pOI~t. I thInk that
thI s bud get has been, gives us enough latI tude and not Just
reading It the same way that others are and I thInk we have some
room to do some thI ngs that we ought to do, and If J arv is IV
passes, we are all In deep trouble.
Mayor Edwards:
Call the roll o~ the motIon please.
Cm Conn:
Aye
Cm EpsteIn:
No and I would like the record to reflect
that I regard additIons at thIS pOInt, substantial addItions, as
fIscally irresponsIble in lIght of the Gann limIt and In light of
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the economIC prospects for the followi~g fiscal year.
Crn Jennings: Nope.
MPT Press: Yes
Crn Reed: No
Cm Zane: Yes
Mayor Edwards:
Yes
CIty Clerk:
Motion carrles.
END OF WILSHIRE-MONTANA NEIGHBORS DISCUSSION AND ACTIONS
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EXHIBIT E
~ontract Accounting and Administratlve Handbook
Avallable from the Department of Community and
Economic Development for review. (pp. 13)
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ATTACHMENT VI
PROCEDURES MANUAL
'WMN
PURPOSK - L - - -, -'-. - - '
This prece-dures manualls 'to be used a.S a reference Dn corporate ~Inlgemlnt. Most of the focus IS on
. flnilfloal management. It is assumed that someone on staff 15 famlhar with these procedures. If that 1S
not the case. an accountant or other financial expert should help to set up procedures.
CORPORATE STRUCTURE
The Arnells of Incorporation and Bylaws are the documents which govltrn how the organization funcbons.
These documents were crea.ted by commuruty people 1n consultation WIth lawyers. other commurnty
OI'ganuatlons and current membe-rs of the- Boa.rd of Directors.
Apphcatlons for tax exempt status must be flled With the IRS and the State Franchise Tax Beard.
Mmutes of the Board of Directors meetmgs should reflect a.ccurately all motions a.nd actions taken by the
board. Copies of 'the mmutes must be flied and avalla.ble for fundmg sources. a.ucbtors, etc.
BOOKKEEPING
Chart of Acaxmts
The chart of accounts IS a l1shng of numbered categories for a.ll income. expenses, and other
transarnons mvolVlng money.
All transactions lnvolvmg money should be labeled on the source document (check, mVOlce, depOSit
sl1Pt etc) so that it 15 easy to trace th~ source Dr desttnabon Df the transacbon.
Keep the cha.ri: of account:s handy and acceSSible so that no checks are writt.n Dr depoSits made
WI~Out bemg labeled clea.rly.
Receipts/Deposits
Separate chedols 101:D Income categories (donations. membership. events. grants, etc.).
Endorse checKs with banK endornment stamp.
Separate cash 1Oto Intome categories or keep hsts of how much of cash belongs 10 each category.
List cheCKS (by na.me of writer a.nd a.mounts) on depOSit cards by category (names of membershlpSt
names of tiCKet buyers, etd.
List cash amounts by name bf known) or total amount.
Total the amounts on each depoSit card.
Prepa.re a summary card wlth totals from each separate deposlt card,
Label each category on depOSit card with cha.rt of accounts # (S32.2-membershlps. etc:).
Tota.l the amounts on the summary card.
l1st checKs by banK number on depOSit slIp bn duphca.te).
Count cash and record tota.ls of currency a.nd cOin on depOSit shp
Totd the amounts hsted on depoSit shp.
Compare totals on depOSit sI1p and on summary card. They must be Identical. If not, go ba.ck to
beglnrnng a.nd che cl< all figure s.
Staple depoSit cards and summary (dated) to copy of depOSit shp
Take checks, cash, and deposit sl1p to banI<.
WHN banks at Centurion BanK on Wilshire.
Cash 15 always locked 10 a safe place If not Immediately depOSited.
DepOSits should be made often. Dally if CASh 15 Involved.
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M all should be opened by two peoplet and cuh should be handled by 'two people.
Mall should be stamped WIth -dolte recelved-.
Disbursements
No check should bL> wrItten wIthout an lOVOle! and an approval for th! expense.
Alloea.tlon should be determmed before check 15 wrItten
WMte on a post-It the chart of account number/s and amountls being spent 1M each category.
Keep the post-It en the InVOlCe.
WMt! checl<. Always llst cnart of account number/s and allocatIon of funds In columns on check
Vouc~rite bnef descrIptIon of eXF.!ens. (reImbursement for .posta.ae~ sal.ry, paper for newsletter. etc).
ChecKs IssueD as payment en contracts should be paId for Wlm InvOIce from consultant or from WMN
InVOICe' form detalhng purpose of payment.
Whlte copy of check IS ImmedIately pla.ced U1 post bInder In chronologIcal order.
P1nK copy 15 s'ta.pled to InVOIce. Stamp med< approval on reverse of InVOICL>. rKord Information.
and get approvalwua1ed (before actual checK IS slgnecU.
Pin\< copy wlth InVele! 15 med alphabebcally 10 locKed file.
Yellow copy 15 Kept 10 chronologIcal order for bookkeeper.
Payroll
A W-4 form should be sta.pled 1n ea.ch employee's personnel fue.
Check the W-4 form for employee's deduct1ons.
look up federal deductIons In fedltra.l tax bool<J.et.
looK up state deduchons in state tax bocf(let.
Statlt dIsability lnSUI"ance IS presently .9%.
FICA deducbon 15 6.7%.
Figure deductions by listing gross monthly sa.1ary, FIT WIthholding, SIT WIthholdIng, FICA
wlthholdmg, and SDr WIthholdIng.
Sl.btract all withholdings from gross salary to figure net Income.
ChecK arIthmetic by iddmg all wlthholdmgs together and subtractmg total Wl'thholdmgs from
gr-oss. Should equu net.
DLI'lng the thlrd month of each quarter, figure the pa.yroll tax bmlts (for ummployment) bl'f~
payroll is prepared.
MonthlY oayroll
List nch employee's monthly gross, FIT, SIT. FICA, SDI, total wlthholdlng, and net on 7 column
pa.per.
Total each column.
Check arIthmetIC by subtra.ctlng total wlthholdlngs from total gross. Should equal net.
Indlvlduallnformation should be recorded on ea.ch employee's mdlVldua.1 p~yrQll retard.
Pay r 01 1 Ad van c e s
Advances should be glVen only after worK has been pIPrformed.
Employee must submIt a. WrItten request for an advance.
Record advances on IndlVldua.1 pa.yroll record.
Be SLre to subtra.ct advances from net payroll check.
Payroll Checks
PAYCHEX will maKe all payroll related booJ<<eeplng much ea.Sler. but It is still importurt to know
how it all wcr\(s manua.1ly.
Be sure ume sheets an up to dde before payrollt. distrIbuted.
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Type chicks only &ftlr an.ran hi. beln figured and med(l-cL e
First Ust alll.dvanCls U1d subtrAci from O&t Mlary Amounts.
On voucher pll"t of checks list account number and net salary.
On bottom hne of chl& list dati, gross, FIT, SIT, SDIt nCA. I.dvlnClts. total Wlthhaldlng, and
net salary. T
DclJb1e check advance amounts.
Relnse checKs on last day of month or when 1111 worK for month hu been perform~d and time sheets
are 1no
peposltinq Wlthholdlnqs
Durlng .flrst a.nd second months of the quarter:
Write il checl< to CentUl'lDl1 Bani< for the amount of FIT and FICA Withheld. Include employer shan of
FlCA.
"'hte a.mount of check on coupon from bool<let sent by feder4l1 gov't.
Xerox a copy of the coupon to sta.ple to pmk copy of checl<.
MaJ.I the cheel( WIth the coupon to Ba.nI< by the 15th of the next month (if you wrIte thIS check WIth
payroll, It helps J<.ep cash flow dearer).
Fill cut state form for SIr and SDI.
Write a checl< to Ilmployment Development Depa.rtment for- total of SIT and SDI.
Xerox a copy Df the state form (51gn It).
Ha.ll check and state form un state envelope) by 15th of next month (if you Wf'lte thIS checl< Wlth
payroll. It also helps Keep clsh flaw clearer).
, or third month of the quarter:
Both state and iederd quarterly iorms must be- filed for thIS month.
Fm out both farms before you wrltl wlthholdmg checl<s.
There 15 a handy form fer f1gurlng wlthhold1ng bm1ts. Flll1t out before third month of th.
quarter pa.yrollt5 done.
The federal form requires totAl quarter pa.yroll a.mounts, subJect to FICA, monthly wi1hholdmgs
deposlted.
Writ. the (th1l'd) monthly federal depDsit check to Ce-ntUl"1OO Bani{ and mall it with the coupon as
done ea.ch month.
The state .form rtqutres ca.lculatu:!ns of SDI. SUI, as well AS SIT Informatlon. Social securIty
card numbers and mdlvlduaJ gross salary amounts are al5CI hsted on the form.
Wl'1te a check whIch 1ncludes SIT. SDI. SUI (1111 detaIled en 'the checlO to EmplDyment Development
Department and mw the check with the state .form 1n the state envelope.
Xerox the forms tWIce. Once for bacK up with pink cOples of checl<s I.nd om:.e Tor 'tht> quarterly tax
fuel
Rememberr to list chart of account numbel"5 -for all the separate pa.rts of these checks.
WMN will contract WIth an a.ccountant who WIll ched< a.ll quarterly tax fIgures before the forms aN
sent out.
Bank Reconc1lia.tlans
Crute a chick regIster by U5lng th. calculator tape to 115t chedr number (use #t key) and check
amount (~e + Key) for ea.ch check written durmg the month. and total the check amounts at the end of the
tape.
Put cancelled checKs from bank sta.tement In numerIcal order
Place a checl< marl< next to check amount on Ntglst@r tape If the cancelled check ha.s been r'@tumed
WIth the- ba.nk statement.
Place a small crcle next to the check amount lf the cancelled checl< 15 m1ss1ng (outstanchng).
Same of the chl!d<s will have been wntten 10 prevIOUs months. Place cheel< marks on preVIous UpI
reglSters fOr' thoH checks.
On the bad< of thl! bani< statement 15 a sectIon 401' lis'bng outstancl1ng checl<l. LIst all .
outstandmg checks bndud1n9 those Wlthout check marl<s from preV10US months) IncludIng checl< number and
meck amount.
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Tot&! thlt list of outstanding checks.
Us. bU'll< rec~lidlon form on bacK of banK statement to fIgure cash in bank.
Ult bank statement endIng b&!a.nce.
Add any d'po51ts mad. durlng the mcrrth which a.re not listed on bani< statement.
Subtra.ct outstandmg cheel< teta.l.
\lINte the total amOll'rt en the bank statem.nt form.
ThIs total should be compared to the actual ca.sh receipts and dIsbursements for the month.
Wnte (on the reverse SIde of the bani< statement) the beglmlOg balance for 'the month (get this
from the ending balance -from the month before).
Add the tota.l receIpts for the month (uSlng the depOSit shps for the tota,l>.
Subtract the total dIsbursements (usmg a. total of all checKs wn.tten).
ThIS results In the endIng balance for the month.
WrIte thIS calculahon on the ba.cK of the banK statement.
Compare thIS ending bala.nce With the balance on the bani< reconCIliatIon form. They must agl'Re
exactly. If they don't, go bacK and find the error.
Bank reconaliations should not be done by the same person who wrJ.tes and approves chlcl<5.
Bounced checks must be pulled out of the tota.l receIpts.
Check charges (if a.ny) must bl added as expenses and must be repartld to the booi<Keeper as
expenses Wlth chart of account numbers.
All the above worl< must be done lito the penny". Bool4Cnplng 15 not rounded off, and all Iff;:';=-
must be found!
WithhDldmg SUI, FUJ, SDI
Each quarter the payroll wlthholdings must be compared WIth the hmlts establ1shed by the state
and federal governments.
A worksheet ha.s been prepared to keep tracK of indiVlduall1mlts.
list names of employees for the flrst quarter in the .flrst column.
label remairung columns:
I. Total Previous Quarters
2. Total Pnsent Guarter
3. Tot&! Quarters (Yrn> (column 1 plus column 21
4. SUl (FUn limIt (column 3 minus .7000)
S.8m limit (column 3 mlTlUS 517.000)
6. SUI (FW) tanble present quarter (column 2 mInus column 4)
7. SDI Tuable present quarter (column 2 mInus column S)
8. SUI owed (column 6 tImes 3.9% [in 1983J)
9. JiUI owed (column 6 tImes .7% [in 1983 J)
It IS unl1l<ely that any ItmplDyee WIll be over the limIts durmg the first quarterl but It 15 still
Important to fill J.n the cha.rt to see how much SUI and Fut are cWltd for each employee.
Fill Ul th. IlROU'lts for each column I dD1ng the arIthmetic imhcded by the label on the column.
For calumns 4 and 5 wrIte 0 Izero) If the number 111 column a is less than the bmlt. Do the
actual arIthmetIc: only If the result IS a posl'hve number.
Total each columnt and do the arIthmetIc for the total number JUst as It was done for the
mdl Vldual.
Double checl< column totals and cross column arithmetIC totals. They should match Ixa.ctly. If
they don't. a mIstake has been madl!. Find It. and fIX It.
ReWMte employ!!'s names for nth quarter and fUlln the wcrI<sheet. Employees ustWly begin
reAchmg the SUI/FUl bmds during the second quarter.
Carry uth employee forward even If they hAve left the payroll so that the totals WIll all worK.
Use the informatIon from thIS worKsheet to fill out the quarterly state and federal tax forms.
Note that the saml system worI<s for FICA, but at present no employee will reach the hmlt.
Note that employees htred in Ja.nuary reach l1mlts and then become "less expensIve" for the agency
15 tM months go by. KmploYlu hired lAtltr U1 the ynr rnth limltslatltr 10 the yea.r. Howevltr.
Iverythmg stArts over a.t thlt beginnmg of J&rlU&I"'(. This is a.n argument far ke~ I. stable staff.
. .
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End of CAl.ndar Yur TAu.
\on's
During Jo1OUa.ry ea.ch employee must be sent 'W2 -forms documenbng tota.l wa.ges for 'the yeoU".
Use the- quarterly summaries from the payroll worl( sheets to determine the yearly gross, FIT, SIT,
501, FICA, tota.l Wlthhtlldlngs, a.nd net fIgures.
Also lIst the sa.me InformatIon from the qua.rterly tax returns. The fIgures should be Identical
with the payroll work sheets. If not, go bacK and check each employee month by month to fmd the
dl sc....epancy .
EefOf'e tYPIng the InformatIon on the W2 forms. locate names. adriresses, socla.l securrty numbers,
and all the yea.l'ly mcome a.nd wlthholdmg totals.
After tYPing the W2Js, tota.! ill the columns a.nd check WIth your worKsheet to see that there a.re
no errors.
fJ2 forms on HeR pa.pel' should be obiamed from a si:a.tloner In December. Get extras 10 ca.se of
tYPIng errors. The forms should he error-free and eraser-free If pOSSIble.
W2 forms tur off so that the employee gets a. little tablet of them a.nd there are several coples
left. One goes to the IRS. Anotner goes to CA FranchIse Tax. R@ep one copy.
1n the tax bookl@t sent by the IHS there are transmlttal forms. US!? the one for W2's, Follow the
dU'ElC1IOnS carefully. Keep a copy of the transmltta.l form chpped to agency copy of the W2's. Mall the
other COPles to the appropriate governmental agency. (The State ha.s a dlHert>nt transmltta.l form but
everythIng else worl<s the same way J
1099's
These forms worl< ihe sa.me way IJ2's do but they are for consultants.
E:ach consulta.nt who made 5600 or more durIng the calendar year must receIve a 1099.
Go through the cash dIsbursement JOUrnal and pullout the mfol'manon about which consultants ma.de
more 'than $600.
FInd the SOCIal securIty numbers for the consultants (they should be on theIr contracts). You'll
usa need to fInd theIr addresses.
After you have typed the 1099J5, tear them apart 50 that one copy goes to the consulta.nt. one to
the IRSt and one to the state. TransmIttal forms are provlded for these forms.
Keep a c.opy of the transmIttAl form and copIes of the 1099's for the files.
END OF FISCAL YEAR TAX FORMS
Non-profIt corporatIons a.re requIred to file tax forms several months after the end of the fIscal
year. These forms are called 199t 990t and CT 2 and are prepar!d by the accountant. The flnancul auc:\1t
must be completed before 'they can be fIlled out. TheIr flhng date becomes a 'target date -for 'the
completIon of the audIt. (! thInk It IS Nov 15). The forms detulmcome and expense mformatlon and
mformatlon about the use of funds and about the boa.rd of directors. If there were to be an election by
the boa.rd to use the 20% rule to list expenses related to lobbym9t these forms would report that
mformatlon. In addl'bon there IS a form sent by the State each year that IS SJmply a report that
the corporanon stIll eXIsts and IS located a:t a certun address. It asKs who 1S authorIZed to receive
offICIal papers served oy the state. It also asl<s for lOformdlon about names and addresses of corporate
offIcers.
CITY GRANTS MANAGEMENT
GRANT PROPOSALS
Proposals are usually due at thl? end of January or the beglnmng of February for" fundmg for the
follOWIng fIscal year.
RFP's (Requests fol' Proposals) a.re sent out by the cIty about a month 10 adva.nce.
Usually there IS a worKshop for CIty grantees where the proposal forms and the procedures for the
yea.r are explaIned.
OBSERVATIONS ABOUT GRANT PROPOSALS TO TH&: CITY
The preposalls wn1:ten for oty staff reVIew land for the seeal serVIces ccmmISSl0n). The worK
5'/1
e tit
plan and the budget go to thl" couneI. (Of course th& cDUnel members have iccess to the entire proposal.)
The proposal!s Important. The worK pla.n a.nd butSge't are more importa.nt. A ma.JOr1ty vote 1S
crUCIal. Worio.ng with staff and councIl members IS critIcal In the process of oty Tundlng. (Just as
worl<1ng closely with the staff oT a founda.'bon IS reqUlred 10 the private worldJ
MembE'rs of the Board wDl'l< closely With staff in the writing aT the proposal especIally on thl" woN<
plan and budget.
FUNDING TIMETABLE:
There are usuallY several publ1c hearIngs about the aty budget and the $oclal services fundmg.
It 15 Important to hnd out when the councIl Will hear the pubhc on the subJect of commumty
services. Usually there IS one hearlOg focussed on that part aT the city budget.
In adthtlcnt there IS il. study session held by the COuntl} With L:1ty staff answenng quest10ns
about the commumty services budget. The publlt doesn't speaK at these seSSions, but Issues are often
raised by countll members glVmg recipients an Idea about how to approach indiVidual counal members for
suoport.
DurIng hearlngs and durlOg counCIl dISCUSSions after hearIngs, agency staff members may be asked
QueSTIons for dar1htatlon. It 1S Impori:an"c to have someone who 1S lntlmately lnvolved With the budget
and orogram ascects of the proposa.l present untll the bitter end of the dlSI:USSlon. It IS also a good
Idea to thoroughly brief city staff members about IrJMN Issues and intricaCIes of the proposal 50 that they
WIll be able to answer L:ouncll questions the way you want them answered.
Networking With other cIty funded agencies during funding 'bme can help to el1mma.te competItion
for starte dollars. Some-hmes mutual support 15 gIVen.
CITY CONTRACTS
There IS a standard CIty contra.ct Tor commumty service funded proJects. Read It carefully, but
there 15 httle that tan be done to change anyth1ng In It. Part of the contract is the worl<plan and
budget. Be sure tha.t the work plan reflects reality. It Can be charlged between fundIng deCISIon and
contract slgmng, but changes after that are more dlfTlcult (and more V1slble).
BUDGETS
Budge'!;s al'e meant to be planmng and operatlOg gUides. They should be adopted after careful
scrutmy. Howevert they may be modIfIed during the year.
Budgets are usually written to cover one 'hscal year-and it works best to budget one year of
fundlng to cOT'T'espond WIth the fiscal yea.r.
The best "how-to" for developlng budgets IS an artlcle written by the Grantsmanship Center on
budget preparatlon.
Budgets should reflect realIty as much as pOSSible. They shouldn't control the program. They
should reflect the program. Planmng for what to do during a year IS necessary before deCiding how money
should be spent. For example, plan maJOr mall1ngs, surveys, pubhcatlons, etc so that when the budget 15
developed It wlllmclude the costs. If there 15n't enough money to cover the program. then more money
needs to be raised-or someth1ng must be cut.
The city's budget form defines speclflc categorIes for reporting. It 1S usually eaSIer to use
their format for all budgebng so that line Items don't havE' to be redefmed for reporting purposes.
It 15 safer to underestlmate mcome and overestlmate expenses.
Remember that 11: takes seed money to raIse money. Either budget that In or plan for uSing only
net figures for money r.used.
LINE ITEMS
lIne 1l.a-ms arl! arranged atcorchng to catE!gorles.
When wrlt1ng a budget Tor a fundIng sOUr'ce, It 1S best to mdude detul shOWIng computatIons for
budgetted amounts. (examplet postage--S40/month x 12 months = 480),
It IS a JUdgement call to deCide WhIch Items should be funded by a funder and which to cover WIth
ft/r
unrestneted lfundralsed) _So Some aglncie5 chooSl to cover all .of and benefIts under restl'1cted
funds and all other Items WIth fundrused money. Yeu have to be much maN! accountable In uS1l1g Qty
fund5. The tl't.y wanb a. nport on all funds ra,lsed and expended (m the form of an audIt) but It dDe'sn't
pay much attentIon to how unrestru:ted funds are actually spent.
EquIpment purcha.ses should be made With unrestr1ded funds whenever 1t 1S posslble. When
eqUIpment IS purchased WIth government funds, It belongs to the funder. At the end of the fundmg
relatIonstllp, the eqUlpment ofttn IS taken over by the funder (or the agern:y can b!' f01'Ced to pay for the
eqUIpment wlth unrestrIcted funds In order to I<eep It).
Techmcally, grant funds are to be used only durIng the fIscal year of the grant. SupplIes are
supposed to be bought and consumed durIng the fundmg year. It IS best to spread expenses out fa1l'ly
evenly. Funders frown on large supply and eqUIpment explmses durIng the last quarter. In fact, when
fundIng 1S renewed annually, the hnes between progra.m years become blurred. It IS never all rIght t.o
spend money before or after the fIscal year of 'the fundIng. Funders see "left over" funds as theIrs to be
returned.
AUDI TS
PREPARA nON
Gather all bool<Keepmg documents (general ledger, cash dIsbursements and cash receIpts JOurnals,
general JOurnal> and cheCK to see that all flIes are complete and eaSIly acceSSIble. ChecK
mvoIce/recelpt fIles to see that theIr contents are accUf'ate. Put banI( statements In chronologIcal
order. ChecK personnel fIles a.nd consultant flIes to see that they are complete a.nd up to date. Ma.Ke
sure that ume sheets are up to date. Areas of concern 1n most audIts Include consultant/contractual
expenses, tax depOSIts, eqUIpment purchases, and wage records.
FInd out perIod of t1me the audIt IS to cover. The CIty usually looKs at only one year at a. tIme.
ihe State and Feds usually looK bacK several years. Be sure to have all the InformatIon eASIly
acceSSIble. And try to famIhar12e yourself WIth pa.st years. You WIll be responSIble for that
Infermahon even If you weren't on staff.
If the fIles are In order, audItors usually do a htUtt samplIng UooK at a hw examples). If
they fInd what they are 100k1ng for, they usually don't spend much tlme sampbng. If they fmd a problem,
they WIll contmue samphng. The more problems there a.re, the more they checK.
If audItors deade that some expenses are to be dIsallowed, there 15 an appeal process. Fmd out
what It IS and use It. The dIsallowed funds must be paId bacK to the .fundIng source. ThIS can be very
paInful (and can lOvolve lO'terest payments as well).
C!TY FUNDS
CIty funded agenoes are audIted by an accountIng fIrm once each year. The audIt fIrm calls for
an aPPOIntment antl 11sts the Items they want to see. These Include all bool<l<eeplng tlocuments, lnVQIa!S,
receIpts. banK statements. personnel records. contract flIes. tax forms, etc. The audIt taKes less than
one day (usuallyl. Its purpose 15 to maKe sure that oty funds have been used as approved by the oty ind
that the money has all been spent. It 15 Important to be avaIlable to answer questIons and to furnIsh
further InformAtIon. The more you can answer, the less they need to delve mto the flIes.
ThIS 15 the tIme when expendItures can be dIsallowed. It IS Important to be able to explam how
any glVen expense was related to the purpose of the contract.
EMPLOYMENT nE:VElOPMENT D6:PARTMENT
The EDD 15 mostly corn:erned WIth wages and consultmg fees. They want to be sure that the state
IS reCeIVIng all the tax money It should.
The audItor 15 lIKely to 1001< closely at who receIved consultant fees to see If they should have
been salarled. They can go back several years WhlCh means that the hIes should reflect the consultant
status of the person who receIved fees. The penaltIes for paYIng a person as a consultant when they
should ha.ve been palO wages are very hIgh. The payroll taxes must be pald and there 15 mter!st charged
on the balance.
The EDD a.lso looKs closely at payroll records a.nd reconCIles them to the forms submltted
quarterly. It IS Important that these match perfectly.
1/1
e e
The test for deCldmg WhIch people are consulh.nts and whIch are employees IS not deu cut.
There are a senes of facts WhIch are analyzed and a ra.ther SUbjectIve JUdgement IS made. Factors WhIch
enter mto the JUdgement 1ndude~
15 the work d~ on the premIses or a.t tne persons own place of bUSIness
IS the worK done at set hours
who deCIdes whICh tasKs to do when
IS there a. contra.ct
15 the worK a speCIal proJect WIth clear beginnIng and end
does the person have:
an gIN (95-
busmess cards
pUblICIty I advertl sements
a bUSIness hcense
other contracts from other agenCIes
IS the person patd by the hour or by the tasK
does the person use theIr own slJpplJes and matl'?rla.ls
does the person receIve any frmge benefIts
The Imoortance of all thIS 15 If the person IS salaried, the agency must wlthhold state and fed
mcome taxE!s, SDI, a.nd pay payroll taxes (unemployment) a.nd FICA (SOCIal securIty). If the person ]s a
consultant, the fee IS paId dIrectly to the person WIth no wIthholdIngs. The agency reports fees
amountmg to $600 or more to the state and fed on 1099 forms at 'the end of 'the calendar year.
IRS
An IRS audIt would ~semble the EnD audIt. Areas of concern to the IRS Include all those that
EDD 1001<5 a:t. but then would be a. fotus on 'tax exempt. status as well. Here 'the tont.ems would lncludf
record keepIng of fLmds rfce1Ved (donatIons, sales, events, grants, eie>. There would also be attentIon
to corporate purpose. Arf the actIv1tIes of the corporatIon related to the stated purpose In the Articles
of Incorporat1on? If they sU$pect 'that there IS a problem. these audIts could be extremely thorough.
PERSONNE:l FILES
There must be a personnel f11e for ea.ch employee of the Corpora.t1on.
It should contam the follOWIng Items:
-1.,J-4 form
-Employment letter (date of employment, salary, duratIon of employment. pOSItIon t1tle)
-TIme Sheets
-Summa.ry of time worl<ed (mduchng vaca:hon, s1cK, comp tIme a.ccrued a.nd current)
-Job descr1ptlon
-CopY of Salal"Y chetK {pm\(} or mdlcahon of pay rtee1.ved
-TermInatIon form (If appl1cable)
-Ettucs/confldentlahty form (SIgned)
-Resume
-EvaluatIons
Personnel flIes should be l<ept In a locl<ed file and should be acceSSIble to the indIVIdual
employee only. Contents of the flle are c.cnfldentla.l.
Consultants should have- IndIVIdual hIes con'tl1mng:
-Contract bncludes work to be performed and compensatIon agreed to)
-<:opJ.s of ChKks (plnKs)
--. ._~ -
fir
-InVOICes for each Checetten (stapled to pmlO
-Resume uf applicable)
-E thlcsl ccnfldentlahty statement
-WorK j:A-udiJet bf appl1cable)
e
I HI HI NG ·
Use the personnel polJCles as a gwde for the hlJ'lng process.
SEARCH <; ~ , -. ,
It 15 Important that notIce of posItIons available be WIdespread so that there 15 a la.rgl apphcant pool.
A 11s1: of local agencIes IS avaIlable In the flies. All pOSItIonS should be notIced to thIS lIst. If ol
larger search IS desU'able, advertIse m the LA TImes~ Commumty Jobs, and Ixpand the 115t to mcludl
natIonal organIzaTIons 5uch as the Center for CommunIty Change (m Washmgton DC), Natlona.l TramIng and
Inform~tlon Center un Chu:ago), MIdwest Academy un ChIcago), and ACORN (ArKansa.s and most other states).
The JOb announcement should Include 50eClf1l: mformatlon about the JOb descrIPtIon. salary, experIence
reOUIred, applIcatIon deadlIne, and startmg date. There should be a descrIptIon of the organizahon
mc!udec. Aopllcants should be InVIted to submIt resumes.
Resumes can be screened by staff and members of the personnel commIttee. The number of people mvolved m
thIS process WIll vary WIth the slgmfIcance of the pOSITIOn beIng fIlled.
InterVIews should be held only WIth apphcants who seem to be promISing. It 15 a waste of everyone's tIme
to InterVIew people who are ObVIously not gOIng to be hIred.
FIrst lO'tervlews should lOvolve staff members and can a.lso lOclude Board members. Second IntervIews
should certou.nly lOvolve Board members as well as staff.
In the case 0; the Execui:1ve Dlrec1:or, the entire Board should be lnvolved In the fmal deCISIon on
hIrIng. In all other cases, the Execunve DIrector makes WIth fmal deoslon for hlrmg after consultIng
WIth other staff and board members.
9/'1