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City Council Legal Review Committee <br />November 2, 2016 <br />Page 4of4 <br />Councilmember Leh stated the 501s can still ask for funding in the City budget <br />and that grants to the board would continue to be spent at the discretion of each <br />board. <br />Councilmember Loo stated this is in no way an attempt to end funding for the <br />boards; however the City has a larger responsibility to its taxpayers and needs to <br />protect itself from liability. <br />Elrod asked how the Downtown Business Association's (DBA) Street Faire is not <br />a liability to the City as they are a nonprofit as well. <br />City Attorney Light stated the DBA is an entirely separate legal entity and carries <br />its own liability insurance. He added none of that precludes them from receiving <br />City grant money. Light added that the various 501s should be carrying their own <br />liability insurance to protect their board members from a lawsuit. It can seem an <br />expensive proposition but is worth it. <br />Councilmember Leh noted this policy is not intended to be antagonistic, but is for <br />everyone's protection. He thanked everyone for their input noting the Committee <br />will take some time to determine next steps <br />Committee members decided to continue discussion of the policy at their <br />December 15 meeting. Councilmember Leh will work on a draft policy for <br />discussion at that meeting. <br />LAWSUIT SETTLEMENTS/LITIGATION UPDATES <br />No update. <br />DECEMBER 15 POTENTIAL DISCUSSION ITEMS <br />Continued discussion of 501c3 policy. Councilmember Leh to draft a proposed <br />policy for discussion. <br />ADJOURN <br />The meeting adjourned at 5:30 PM. <br />