CC SR 20230815 05 - Community Foundation Update & Capital Campaign
CITY COUNCIL MEETING DATE: 08/15/2023
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consideration and possible action to receive a report on the City’s RPV Community
Foundation and Finance Advisory Committee’s recommendation of hiring a consultant to
lead a capital campaign for the Civic Center.
RECOMMENDED COUNCIL ACTION:
(1) Receive and file a status update on the formation and implementation of the RPV
Community Foundation;
(2) Review the Finance Advisory Committee’s (FAC) recommendation to on-board a
development consultant for the purposes of developing and leading a capital
campaign to raise funds to pay for certain City projects; and,
(3) If deemed acceptable, direct the Staff to initiate the process of soliciting request
for proposals (RFPs) for a development consultant, following the recommendation
made by the FAC, to conduct a feasibility study and lead the capital campaign for,
among other City projects, the proposed Civic Center Master Plan.
FISCAL IMPACT: Tonight’s report does not have a fiscal impact. However, if the City
Council directs staff to proceed with on-boarding a Development Consultant, costs for
such consulting services based on an approved proposal may be borne by the City.
Amount Budgeted: N/A
Additional Appropriation: N/A
Account Number(s): N/A
ORIGINATED BY: Karina Bañales, Deputy City Manager
Vina Ramos, Deputy Director of Finance VR
REVIEWED BY: Same as below
APPROVED BY: Ara Mihranian, AICP, City Manager
BACKGROUND:
In 2021, the FAC presented its Fiscal Year 2021-22 Work Plan, which included the FAC’s
recommendation of creating a philanthropic program to assist in paying for major capital
projects, such as the Ladera Linda Community Park Project and a new Civic Center. To
build upon this initiative on a Citywide scale, in December 2022, the City Council
authorized Staff to start the process of establishing the City’s nonprofit RPV Foundation,
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RANCHO PALOS VERDES
which will seek donations to alleviate costs burdened by the City to build new facilities,
improve roads, support recreation programming, and othe r special projects.
In July 2023, the FAC received a preliminary report on the Civic Center Master Plan
including the Conceptual Site Planning Stage, Financing Pathways, Financing Cost
Analysis, and Gap Funding Options. The FAC re-affirmed its recommendation for the City
Council to consider hiring a consultant firm that specializes in seeking donors for capital
campaigns.
This evening, Staff will present a status update on the RPV Community Foundation and
seek Council direction whether to initiate the FAC recommended process of soliciting
proposals for a development consultant who will conduct a feasibility study and lead the
capital campaign in support of building a new Civic Center among other City projects and
activities.
RPV Community Foundation
On December 20, 2022, the City Council directed Staff to proceed with establishing a
donor program to stimulate philanthropic giving as a way to alleviate costs incurred by the
City including, but not limited, to building new facilities (i.e. Civic Center and City Hall),
improving roads, street median beautification, tree removal or tree planting requests,
supporting recreation programs, and promoting citizen contributions and donations to
enrich the quality of life in the City.
On March 7, 2023, the City Council authorized Staff to move forward with taking the next
steps to form a nonprofit foundation to accept philanthropic donations. The Council also
selected RPV Community Foundation as the name and affirmed the governing structure,
which will be the Council serving as the board of directors.
On April 18, 2023, the City Council authorized Staff to move forward with submitting
required documents to form the foundation. These included Articles of Incorporation, By-
Laws, and a Conflict-of-Interest Policy. Since then, the City Attorney’s Office has
submitted the required documents to initiate the establishment of the RPV Community
Foundation, with the exception of a federal 501(c)(3) form, which is still being completed
and is due at the end of August 2023.
Once the City Attorney’s Office is notified that the nonprofit has been established, Staff
will discuss next steps to begin operating the Foundation.
Capital Campaign Development Consultant
In December 2021, during its biannual report to the City Council, the FAC recommended
the City Council consider establishing a 30% contribution from philanthropic or non-civic
sources for the Civic Center Master Plan Project. During meetings held on July 20, 2023
and July 27, 2023, FAC approved a motion for Staff to communicate the following
recommendation to the City Council:
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Bring a staff report for City Council’s consideration on August 15, 2023 to
hire a Development Consultant to do a feasibility study and run/implement
a capital campaign. FAC recommends a 30% goal for raising funds for the
Civic Center.
The FAC recognizes that this specialized service is essential for providing the expertise
and experience necessary to maximize the City’s likelihood of securing funding
opportunities for the Civic Center.
Based on Staff’s initial research, some of the key responsibilities of a development
consultant are as follows:
• Conduct a feasibility study to assess project viability.
o During this process, Staff anticipates the consultant will provide
feedback on the feasibility and likelihood of FAC’s recommendation
of the 30% (of project costs) goal for raising funds for the Civic Center
Master Plan.
• Develop fundraising opportunities and strategy.
• Execute the RPV Community Foundation’s mission and objectives.
• Oversee and lead a capital campaign for specific projects.
• Provide guidance in adhering to legal and ethical standards throughout the
City’s RPV Community Foundation capital campaign.
The costs associated with the consultant are unknown at this time and to be determined
once the City Council authorizes Staff to move forward with FAC’s recommendation.
According to information on the California State Treasurer’s website, consultant fees for
finance-related services in public agencies vary from $17,000 to over $100,000,
depending on the extent of the services required. Currently, the City’s contracted financial
advisory services are approximately $350 to $445 per hour.
If the FAC’s recommendation is desired by the City Council at this time, direct staff to
initial the RFP process to determine the services that would be provided by a development
consultant and the cost of delivering those services. Based on proposals received, staff
will come back to ask the City Council desires to on-board a development consultant.
Staff anticipates the RFP process to take approximately three to four months, if directed
to proceed this evening.
CONCLUSION:
Based on FAC’s recommendation, Staff seeks the City Council’s direction on whether to
proceed with initiating the process of soliciting proposals for a development consultant.
While FAC’S recommendation is specific to the Civic Center Master Plan, Staff
recommends that the scope of service should also include other projects and activities
contemplated for the RPV Community Foundation. The additional scope include
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improving roads, beautifying street median beautification, handling tree removal or tree
planting requests, and providing support for recreation programs.
ALTERNATIVES:
In addition to the Staff recommendation, the following alternative action s are available for
the City Council’s consideration:
1. Do not direct Staff to proceed with soliciting proposals from development
consultants at this time.
2. Direct staff to go back to the FAC with a specific directive for their input and
recommendations.
3. Take other action, as deemed appropriate.
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