Legal Review Committee Agenda and Packet 2016 11 02

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City Council Legal Review Committee October 20, 2016 Page2of3 December of 2015. She suggested these rules are clear and simple and easy to understand. Councilmember Leh stated the draft from 2015 was in adequate and needs additional information such as do's and don'ts and requirements for separating the entities. Councilmember Stolzmann asked if the City has a need for the 501s in addition to the standing City boards. Why do we need fund raising arms of these groups? Councilmember Leh stated the answer to that question should come from the City Council, not the 501s. Members discussed some of the various issues that need to be addressed including legal addresses of the 501s; requiring non -interlocking directorates between boards and the 501s; how money can be donated to the City without the 501; 501 use of City facilities and staff time; and possible requirements to receive City benefits such as staff time and meeting space. Councilmember Leh stated there are three choices 1. Continue as is knowing the liability concerns; 2. Absolute separation; 3. Some combination where if they meet certain rules, they in turn get some City help. Councilmember Stolzmann suggested the 501s should be required to be entirely separate from the City. She stated this might be hard in the short-term, but in the long run it is the best way to protect the City and have a clear understanding of everyone's roles. Councilmember Loo asked Attorney Light if there are issues with the boards that have members that sit on both the City board and the 501 such as the two members of the Historical Commission that sit on and represent the Commission on the History Foundation. Attorney Light stated that if it is a small number of members that can't control the board of the 501 it is fine. He suggested that staff members can attend 501 meetings but should not be official ex officio members. Members were in agreement they want to recommend a full separation of City boards and the 501s. Next Steps: Councilmember Stolzmann and Councilmember Loo will meet to create a FAQ document that would explain this process to the 501s.