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ILA Cityor <br />Louisville <br />COLORADO • SINCE 1878 <br />CITY COUNCIL COMMUNICATION <br />LEGAL REVIEW COMMITTEE <br />SUBJECT: <br />DRAFT POLICY REGARDING 501c3 ORGANIZATIONS <br />AFFILIATED WITH THE CITY <br />DATE: DECEMBER 17, 2015 <br />PRESENTED BY: MEREDYTH MUTH, PUBLIC RELATIONS MANAGER <br />SUMMARY: <br />In March and September the Legal Review Committee discussed the role of, and <br />liability issues related to, the five 501 c3 nonprofit organizations affiliated with the City. <br />All parties agree the different 501 c3s do good work for the City and offer great support <br />for City programs and facilities, however there is concern related to liability issues that <br />may arise and how to differentiate between an outside fund raising group acting <br />independently and the City itself. At that time the Committee directed staff to prepare a <br />draft policy identifying rules a 501c3 would need to abide by to be affiliated with the City. <br />Staff agrees with comments made at the March meeting that we want to make it easy <br />for the 501s to do business. That said, the suggested draft rules are designed to protect <br />both the City and the 501c3s. <br />Currently there are five 501c3 non - profit entities affiliated with the City, either through a <br />board or commission or through a facility. These boards raise funds that are spent <br />directly on City programs or facilities. <br />• Cultural Council <br />• History Foundation <br />• Friends of the Arboretum <br />• Seniors of Louisville <br />• Library Foundation <br />Attached is a draft policy that takes the information the Committee previously reviewed <br />and puts it into a formal policy. Once the legal committee is comfortable with the draft, <br />staff will circulate it with the five 501 s affiliated with the City for their input. <br />Background <br />As discussed in March and September, these rules have been formulated to address <br />the following issues. <br />Liability: <br />Currently all members appointed to a City board are listed as "public officials" on <br />the City's liability insurance. They are covered as long as they are acting within <br />their "scope of work" for the board but in some cases there is no distinction <br />between when members are acting for the City board or for the 501 c3. <br />LEGAL REVIEW COMMITTEE <br />