Legal Review Committee Agenda and Packet 2016 03 31 Minutes

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City Council Legal Review Committee March 31, 2016 Page 2 of 3 Light noted that in general, the City has procured bond counsel on a transactional basis, not by term. Leh asked if this process is consistent with the City's purchasing policies. Light noted it is as professional services are exempt from the bidding requirement. Light added the City would do an official engagement letter with Wisor if the tax question is placed on the ballot. 501C3 ORGANIZATIONS AFFILIATES WITH THE CITY Leh stated he had been thinking about whether this is a problem to be solved and what the goals of this process should be. He noted it started as a liability issue but now thinks that may not be the primary goal. He stated he thinks it is important that whatever the Committee decides, this should not discourage people from donating money or cause the 501s unnecessary disruption. He continued, asking where/how should the city be involved, are the boards distinct enough from the 501s, how do public records and open meetings rules apply, and how is staff time allocated. He asked if addressing these issues is enough of a reason to affect the City's relationships with the various boards. He stated that liability alone shouldn't drive this conversation; the bigger issue is how these groups raise money. Leh stated people can donate to the City and still take deductions, but they don't know that. Maybe there are ways to bring fold the fund raising of the 501s into the City. Loo noted that if these boards want to come into the City's fold they will have to abide by all of our financing and open government rules whereas if they stay separate they can act on their own. Lipton added that liability and reputational liability are still important and we need to protect the City's interests. We want to protect both the City and the 501 members, but don't want the process to be cumbersome. Make it simple, and help everyone reach a good conclusion with everyone protected. Leh noted some board members do not know they are appointed to the 501 automatically (Cultural Council). Those boards need to decide if having a 501 is a necessity to raise money. Lipton stated the City is not set up to staff and manage fund raising. It has a lot of overhead. Leh would like to educate the 501s on their option to do their fund-raising as a part of the City. He thinks it would solve a lot of issues. He worries a new policy will keep people from volunteering.