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SR 09-27-2022 5B City Council Report City Council Meeting: September 27, 2022 Agenda Item: 5.B 1 of 4 To: Mayor and City Council From: David White, City Manager, City Manager's Office Ramon Batista, Police Chief, Police Department Subject: Approval of Fiscal Year 2022-23 Appropriation of Revenue and Expenditure Budgets for Donations Made to the We Are Santa Monica Fund to Support the Santa Monica Police Cadet Program Recommended Action Staff recommends that the City Council authorize budget changes as outlined in the Financial Impacts & Budget Actions section of this report to appropriate funds donated to the We Are Santa Monica Fund to expand the Police Cadet Program. Summary A group of four community members and business owners donated a total of $400,000 to the We Are Santa Monica Fund for the sole and exclusive purpose of expanding the Police Cadet Program. The We Are Santa Monica Fund Advisory Board approved accepting the donations for this purpose. Since donations to the We Are Santa Monica donor-advised fund are made to the fund’s steward, California Community Foundation, Council’s approval is not needed to accept the donation. Council action is needed, however, to appropriate the corresponding revenue and expenditure budgets. Discussion In April 2022, a community member approached the City of Santa Monica with an interest in raising funds to support the Santa Monica Police Department and enhance public safety. Staff determined any such charitable contributions would be best utilized to help restore the Police Cadet Program, a valued community program that was eliminated during the 2020 budget restructuring, but slowly has been revived with six 5.B Packet Pg. 50 2 of 4 cadets currently participating in the program compared to the pre-pandemic total of 21 participants. The SMPD Cadet Program is a law enforcement apprenticeship program founded in 1967. The goal of the program is to assist young people in their achievement of a college degree prior to their 21st birthday. In 1967, Santa Monica was one of the few police departments in the country that required a college degree. The Cadet Program’s initial goal was to help attract and keep new police recruits to the Santa Monica Police Department. The Police Cadet expectations are high morals, excelling academically, using good judgment, and being active in the community. SMPD Cadets who decide to advance in public safety careers typically perform very well in civil service testing processes. Many of SMPD’s cadets have advanced to rewarding careers in a variety of sworn and civilian law enforcement positions at the municipal, state, and federal levels. Others have opted to work in related civil service positions with various government agencies. Following initial conversations with the community member, Jordan Kaplan, who expressed interest in raising funds to support SMPD and enhancing public safety, Mr. Kaplan, who is the President/CEO of Douglas Emmett Inc., committed to donating $100,000 to the We Are Santa Monica Fund with the understanding that the funds would be used solely for expanding the Police Cadet program. To further advance restoring this beloved community program, Mr. Kaplan then pledged to challenge several of his peers to match his donation. His efforts resulted in an extraordinary outcome of an additional $300,000 being donated to the We Are Santa Monica Fund, through $100,000 donations each from Mr. Jeff Worthe, Macerich Management, and Ocean Avenue LLC (Fairmont Miramar). All four donors have heavily invested in and contributed to our community as property owners and business owners with their company headquarters located in Santa Monica, and they collectively employ hundreds of people in the city. These generous donations demonstrate their commitment to giving back to Santa Monica residents by supporting citywide public 5.B Packet Pg. 51 3 of 4 safety and providing opportunities for local college students to gain valuable job training in the Cadet Program These donations would support hiring an additional five cadets for four years, which aligns with the cadets’ anticipated four-years of enrollment as full-time students in an accredited undergraduate degree program, a requirement for SMPD cadet participation. Cadets are paid the City’s living wage, currently $18.17 per hour. This equates to salary costs of approximately $18,000 per cadet for the first year, with cost of living adjustments anticipated each year. Additional program expenses, such as specialized training and equipment expenses vary and would be funded by any remaining funds from these donations, as well as SMPD’s existing operating budget. Advisory Board Action On June 8, 2022, the We Are Santa Monica Fund Advisory Board unanimously approved accepting the $400,000 total donation for the express purpose of supporting the Police Cadet Program. The We Are Santa Monica Fund is a City-initiated donor- advised fund stewarded by California Community Foundation, a 501c3 non-profit organization. The We Are Santa Monica Fund Advisory Board, composed of seven Santa Monica residents, is appointed by and advisory to the City Manager. The advisory board’s charge is to fundraise for charitable areas of support approved by Council and vet funding requests from non-profit organizations to exclusively serve the Santa Monica community. Donations to the fund technically are made to California Community Foundation and therefore do not require City Council approval for acceptance, but Council’s approval is required for appropriation of the relevant revenue and expenditure budgets. Financial Impacts and Budget Actions Staff seeks authority to appropriate the first year of funds received by the City of Santa Monica from the We Are Santa Monica Fund to support the Santa Monica Police Cadet Program and recommends the following budget changes. 5.B Packet Pg. 52 4 of 4 FY 2022-23 Budget Changes Establish Revenue Budget Appropriate Funds Account Number Amount Account Number Amount 10180001.417030 $100,000 0118000X.511507 $100,000 01800001.692160 ($100,000) 10800002.692160 $100,000 Total $100,000 Total $100,000 The We Are Santa Monica Fund will disburse $100,000 to the City each fiscal year for four years. Future budget appropriation of $100,000 annually will be included in subsequent fiscal year budgets, contingent on Council approval. Prepared By: Melissa Spagnuolo, Acting Community Partnerships Administrator Approved Forwarded to Council 5.B Packet Pg. 53