Legal Review Committee Agenda and Packet 2016 12 15

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PRELIMINARY DRAFT — 2016.12.12 Policy Concerning Louisville Non -Profit Corporations and the City of Louisville BACKGROUND Introduction The City of Louisville has a long and positive relationship with non-profit organizations of many kinds (NPO). The NPOs provide residents with many benefits. Those benefits include funds raised for City amenities and capital projects, grants given to citizens in need of financial help, critical input on important decisions, and assistance provided to City staff members to conduct activities and events that serve the common good. The City would not be what it is today without the strong support of volunteers who have worked tirelessly for Louisville residents. Historically, some of these NPOs have worked closely with boards and commissions that the Louisville City Council have established or with the City more generally, including the following (with the name of the City board or commission, if any, with which it has affiliated in parentheses following it): • Louisville Cultural Council (Louisville Cultural Council); • Louisville Senior Advisory Board (none); • Louisville Library Foundation (Louisville Library Board); • Louisville Historical Foundation (Louisville Historical Commission); • Louisville Friends of the Arboretum (Parks & Public Landscaping Advisory Board). For reference, these five NPOs will be referred to as the Louisville NPOs, with the qualification that each of the five operates differently and has its own unique relationship with the City. Purpose Over time, questions have arisen about the relationships between and among Louisville NPOs, boards and commissions, and the City. The purpose of this Policy Concerning Louisville Non-profit Associations and the City of Louisville (Policy) is to address these concerns. Specifically, the Policy seeks to address the following issues: • The independence of the City NPOs from the City's control. • The potential legal liability of the City and the NPOs for their respective actions. • Staff assistance and other resources provided by the City. • Compliance by the City and its boards and commissions with applicable laws, including but not limited to City ordinances and state laws concerning public meetings and public records. • The City's equitable treatment of NPOs. The intention of the Legal Committee is to provide clear guidance to its citizens concerning the relationships between NPOs and the City, including its boards and commissions. Process Throughout the policymaking process, the City seeks to maintain transparency in the process by which the policy is reviewed, revised, and adopted. This Policy originated with the Legal Committee of the City Council. It has not been adopted by the City Council and has not been finalized yet. The Legal Committee seeks review and input by staff, members of the City Council, members of the City's boards and commissions, those involved with NPOs, and other residents of our community. After seeking input, the Legal Committee will convene again to revise the draft before recommending a version to be adopted by the City Council through the public hearing process.