HomeMy WebLinkAbout03/17/1992, C-11 - CONSIDERATION OF A RECOMMENDATION FROM THE HUMAN RELATIONS COMMISSION (HRC) TO AWARD $2,000 TO AIDS SUPPORT NETWORK (ASN) ON BEHALF OF HP & COMPANY, A RECOVERY RESOURCE CENTER, FROM THEIR GRANTS-IN-AID EMERGENCY RESERVE MEETING DATE:
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COUNCIL AGENDA REPORT ITEM NUMBER: _
FROM: Ken Hampian Assistant City Administrative Office-,�- L
Prepared By: Deb Hossli, Administrative Analyst"
SUBJECT: Consideration of a recommendation from the Human
Relations Commission (HRC) to award $2 , 000 to Aids Support Network
(ASN) on behalf of HP & Company, a recovery resource center, from
their Grants-In-Aid Emergency Reserve
CAO RECOMMENDATION: Approve and authorize the Mayor to execute an
agreement with ASN on behalf of HP & Company to provide an
emergency grant of $2, 000.
DISCUSSION:
Background
HP & Company is a community based resource center that serves those
recovering from addictions (e.g. , alcohol, drugs, gambling, etc) .
It's primary purpose is to provide a place for and recovering
individuals to gather and provide mutual counseling and support.
In addition, HP & Company provides a 24 hour hotline for recovering
individuals and a lending library stocked with recovery materials.
Recovery groups currently using the facility include Alcoholics
Anonymous, Narcotics Anonymous, Smokers Anonymous, and Debtors
Anonymous, etc.
HP & Company has been in existence since 1988 and is widely used
by the social and human service agencies in our community. As an
example, HP received 715 referrals during 1990-91 from agencies
such as, County Probation Department, the Family Services Center,
Alcohol Services, Mental Health, and the Salvation Army. HP's
facility represents the only recovery center that is open to the
general public free of charge. HP & Company is open from 10: 00 am
to 6: 00 pm Monday through Saturday of each week, and is operated
totally by volunteers. Attachment 1 provides a listing of the
units of service provided at the center since its opening in 1988 .
Request of HRC
In January of this year, HP & Company approached the HRC requesting
an emergency grant in the amount of $2, 000 from the Commission' s
Grants-In-Aid reserve to fund late rental payments ($1, 700) and
utility bills ($300) . Up until this point, the group had funded
its ongoing operations (rent and utility costs) through profits
from their gift shop, fund raising events, private donations and
the founder's personal income. Because of the recession, however,
sales in HP's gift shop and private donations have fallen off
significantly resulting in a shortfall of revenues to run the
center. As a result, the group requested the HRC to provide them
with a one time emergency grant to help them through the rest of
this fiscal year.
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COUNCIL AGENDA REPORT
In reviewing HP's request for funding, the HRC was supportive.
Their review confirmed that there was a documented need for the
services provided by HP & Company and their request for funding was
merited. The review also revealed, however, that HP & Company had
filed for, but not received, their federal non-profit status (this
is required for all Grants-in-Aid recipients) . As such, the HRC
advised HP & Company that while they were very supportive of the
funding request, they could not recommend an emergency grant until
the group obtained their federal non-profit status (which is not
expected for at least another 90 days) .
HP & Company has since approached the HRC with an alternative
proposal to meet the City' s federal non-profit status requirement.
HP & Company has secured the permission of the ASN to use their
organization' s non-profit status (see Attachment 2) . The City
Attorney has determined that this arrangement is acceptable (this
same approach was used to provide Mystic Krewe with their recent
grant) . As such, the HRC unanimously acted at their March 4 , 1992
meeting to forward to the Council a recommendation to award a
$2 , 000 grant to ASN on behalf of HP & Company.
It is important to add that HP' s executive director has applied for
other outside sources of funding (e.g. , the County's community
project funds) to stabilize the program in the future and does not
expect to ask for City funding in 1992-93 .
FISCAL IMPACT:
Approval of this recommendation will result in a total cost of
$2, 000 to the City. Staff is recommending that monies from the
HRC's Grants-In-Aid reserve be used to fund this request (there is
currently $5, 000 allocated to the reserve - if this request is
funded, there will be an available balance of $3 , 000) .
ATTACHMENTS:
Contract
-1- Service Statistics
-2- Letter from ASN
-3- Literature on HP & Company
\f:hpco
AGREEMENT
THIS AGREEMENT, dated , for the convenience of the parties
hereto, is between the City of San Luis Obispo, a chartered municipal corporation
(referred to herein as CITY) and Aids Support Network (referred to herein as ASN).
WITNESSETH
WHEREAS, ASN has requested CITY to contribute to a program to provide the services
described in "Exhibit A" attached hereto, and
WHEREAS, said services will be available to residents of the City, thereby serving both
a public and municipal purpose.
NOW, THEREFORE, CITY and ASN for and in consideration of the mutual benefits,
promises, and agreements set forth herein, do agree as follows:
1. ASN will make its services as described in "Exhibit A" in conjunction with HP &
Company, available to CITY residents during the period of March 1, 1992 to June
31, 1992.
2. ASN will provide CITY with a year end program report, summarizing
administrative, financial, and client service activities. Said reports shall be in the
form of "Exhibit B", attached hereto.
3. ASN and all of its agents, representatives, or participants in any manner in the
performance of its obligations and duties hereunder, shall be employees,
independent contractors, or volunteers for ASN.. They shall not for any purpose
be considered employees or agents of the CITY.
4. ASN agrees to hold CITY harmless, and to defend CITY against, from, and in any
claim, action, proceeding, or hearing wherein there is an allegation charging
liability on the part of the CITY as a result of any act of omission, negligent or
otherwise, by ASN.
5. CITY agrees to pay ASN a one time only grant, in the sum of $2,000 (two
thousand dollars), to be used as described in "Exhibit A". The grant will be paid
in one installment by March 31, 1992.
6. The City Administrative Officer may terminate this agreement at his sole
discretion, after a public hearing and upon ten (10) days written notice to ASN.
Said termination shall be .effective thirty (30) days after CITY mails notice of
termination of agreement to ASN. Any funds not paid pursuant to paragraph 5
above shall revert to CITY upon said termination.
iii-3
7. For purposes of notice under this agreement, all notices shall be considered
effective upon being sent by certified mail to the following addresses:
CITY:
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, CA 93403-8100
Attention: Deb Hossli, Administrative Analyst
Aids Support Network
c/o 1957 Santa Barbara Street
San Luis Obispo, CA 93401
IN WITNESS WHEREOF, the parties hereto have executed this agreement by their
proper officers duly authorized:
AIDS SUPPORT NETWORK
By:
CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION
By:
MAYOR
Attest By:
Pam Voges, City Clerk
-Approved as to form:
By:<Qm lle'ltw Z�'
' rney
\ASN. agr
T.'XHEB1T "X
AIDS SUPPORT NETWORK, on behalf of HP & Company agrees to use their Human
Relations Commission emergency grant of $2,000 to fund late rent payments ($1,700) and
late utility bills ($300).
EXHIBIT' "B°
HUMAN RELATIONS COMMISSION, GRANTS-IN-AID PROGRAM
PERIODIC REPORTING GUIDELINES
Organizations receiving funds through the Human Relations Commission Grants-In-Aid
Program are required to submit activity reports to the City.
The reports shall consist of the following and be due on July 31, 1992:
1. Administrator's Report: A brief synopsis of the activities of the reporting period.
This should include a statement describing activities, service or programs provided,
and any changes that have occurred during the reporting period.
2. Statistical Survey: This document should include the number of clients served,
their cities of origin, the nature of services provided, as well as any other statistics
which are kept by the agency. The total number of clients served should also be
broken down by the type of service received. For example, if a client could
possible receive food, lodging, fuel, or food only, then the number of recipients
for each type of service should be indicated.
3. Financial Report: A financial statement that details how the City's grant monies
have been expended.
Reports should be sent to:
City of San Luis Obispo
P.O. Box 8100
San Luis Obispo, CA 93403-8100
Attention: Deb Hossli
\asn.agr
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Attachment 1
SERVICES RENDERED
Description of Oct 88-89 89-90 90-91
Services
p:ione calls
(gen. info. ) 5+�5 10, 1 :3f;
crisis calls 3� 57 1 ^
referrals made
to therapist.- -^.� 111 1 31
referral to
12-step grou?.) 219 397 71
of sagekly
at ..P. CPC 7 12
aee;;ly attendance
of i�itc-s . (A ,C- ) 100, 175 �
oral];-in clients 237 390 512
referrals from
local therapists 127 110 37 "
*** referrals from 19 51
other agencies
referral of clients
to chemical treatment
facility from :?.P. CRC 17 39 127
***Other Hgencies may include
one or more of the following:
COUNTY PROBATION HOMELESS SHELTER
AIDS SUPPORT NETWORK HOSPICE
FAMILY SERVICES SALVATION ARMY
WOMEN'S RESOURCE CENTER COUNTY MENTAL HEALTH
HOTLINE CAL POLY COUNSELING DEPT.
ALCOHOL SERVICES COUNTY DRUG PROGRAM
l/-7
Attachment 2
February 28 , 19G
Debbie Hosely
Human Relations
Commission, San
Luis Obispo
Dear Ms . 'Hosely:
My name is Lisa Dean, and I am the President of the Board of
Directors for the Aids Support Network, Which is a local United
Way non—profit agency.
In the spirit of helping another community agency, we would like
to support H. P & Co . , under the direction of Susan Smith, by
becoming an umbrella oranization and accepting for H. P & Co . the
funds awarded to them. The Aids Support Network would be willing
to accept fiscal responsibility for all funds .
If there are any questions or documentation that needs to be
provided, please let me know. I am excited that we will be able
to give a hand to a deserving organization.
Sincerely, '\
Lisa M. Dean
President , ASN
L'ii 8
Internal Revenue Service Department of the Treasury
District Director
P 0 BO-X* -%-00L SfLiF SF-4-4-4£,
SAN FRANCISCO, CA 94102
'-ILp1r!�nt Fi-:ation Number:
77-0205717
Date: JUN. 1.4, 1989 Case Number:
959146005
SAN LUIS OBISPO WUNTY ,AIDS %PPORT I;.antact Person:
NETWORK JGFIN PAPKA
PO Box 12152 G_.ntact Telephone Number:
SAN LUIS OBISPO, CA 93406 (4L5) 556-0251
accounting Period Ending:
June 30
Foundation Status Classification:
509(a) (1)
Advance Ruling Period Ends:
June 30, 1992
Caveat Applies:
Yes
Dear Applicant:
Based on information supplied, and assuming your operations will be as
stated in your application for recognition of exemption, we have determined
you are exempt from Federal income tax under section 501(c) (3) of the Internal
Reveniue Code.
Because you are a newly created organization, we are not now making a
final determination of your foundation status under section 509(a) of the
Code. However, we have determined that you can reasonably be expected to be
a publicly supported organization described in sections 509(a) (1) and
170(b) (1) (A) (vi).
Accordingly, you will be treated as a publicly supported organization,
and not as a private foundation, during an advance ruling period. This
advance ruling period begins on the date of your inception and ends on the
date shown above.
Within 90 days after the end of your advance ruling period, you must
submit to us information needed to determine whether you have net the
requirements of the applicable support test during the advance ruling period.
If you establish that you have been a publicly supported organization, you
will be classified as a section 509(a) (1) or 509(a) (2) organization as long
as you continue to meet the requirements of the applicable support test. If
you do not meet the public support requirements during the advance ruling
period, you will be classified as a private foundation for future periods.
Also, if you are classified as a private foundation, you will be treated as a
private foundation from the date of-your inception for purposes of sections
507(d) and 494D.
Grantors and donors may rely on the determination that you are not a
private foundation until 90 days after the end of your advance ruling period.
If you submit the required information within the 90 days, grantors and donors
Letter 1045(CG)
-2-
SAN LUIS OBISPO COUNTY AIDS SUPPORT
may continue to rely on the advance determination until the Service makes a
final determination of your foundation status. However, if notice that you
will no longer be treated as a section 509(a) (1) organization is published in
the Internal Revenue Bulletin, grantors and donors may not rely on this
determination after the date of such publication. Also, a grantor or donor
may not rely on this determination if he or she was in part responsible for,
or was aware of, the act of Failure to act that resulted in your loss of
section 509(a) (1) status, or acquired knowledge that the Internal Revenue
Service had given notice that you would be removed From classification as
a section 509(a) (1) organization.
If your sources of support, or your purposes, character, or method of
operation change, please let us know so we can consider the effect of the
change on your exempt status and Foundation status. Also, you should
inform us of all changes in your name or address.
As of January I, 1984, you are liable for taxes under the Federal
Insurance Contrititions Act (social security taxes) on remuneration of $100
or more you pay to each of your employees during a calendar year. You are
not liable for the tax imposed under the Federal Unemployment Act (FUTA).
Organizations that are not private foundations are not subject to the
excise taxes under Chapter 42 of the Cade. However, you are not automatically
exempt From other Federal excise taxes. If you have any questions about
excise, employment, or other Federal taxes, please let us know.
Donors may deduct contributions to you as provided in section 170 of the
Code. Bequests, legacies, devises, transfers, or gifts to you or for your use
are deductible for Federal estate and gift tax purposes if they meet the
applicable provisions of sections 2055, 2106, and 2522'of the Code.
You are required to file Form 990, Return of Organization Exempt from
Income Tax, only if your gross receipts each year are normally more than
$25,000_ If a return is required, it must be filed by.the 15th day of the
fifth month after the end of your annual accounting period. The law imposes
a penalty of $10 a day, up to a max imun of $5,000, when a return is filed
late, unless there is reasonable cause for the delay.
You are not required to file Federal income tax returns unless you are
subject to the tax on unrelated business income wider section 511 of the Code.
If you are subject to this tax, you must file an income tax return on Form
990-T, Exempt Organization Business Income Tax Return. In this letter, we are
not determining whether any of your present or proposed activities are
unrelated trade or business as defined in section 513 of the Code.
You need an employer identification number even if you have no employees.
If an employer identification number was not entered on your application, a
number will be assigned to you and you will be advised of it. Please use that
number on all returns you file and in all correspondence with the Internal
Revenue Service.
Letter 1045(CG) L4.11,140
-3-
SAN LUIS OBISPO COUNTY BIDS SUPPORT
Because this letter could help resolve any questions about your exempt
status and foundation status, you should keep it in your permanent records.
IF the heading of this letter indicates that a caveat applies, the caveat
below or on the enclosure is an integral part of this letter.
If you have any questions, please contact the person whose name and
telephone number are shown in the heading of this letter.
Sincerely yours,
Brian P. McMahan
Acting District Director
Letter 1045(CG)
-4-
SAN LUIS OBISPO COUNTY AIDS SUPPORT
If distributions are made to individuals, case histories regarding the
recipients should be kept showing names, addresses, purposes of awards, manner
of selection, relationship if any to members, officers, trustees or donors of
funds to you, so that any and all distributions made to individuals can be
substantiated upon request by the Internal Revenue Service. (Reverie Ruling
56-304, CB 1956-2, page 306).
Letter 1045(CG)
Attachment 3
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