TO: CITY COUNCIL
VIA: CITY ADMINISTRATOR
Placentia City Council
AGENDA REPORT
FROM: DEPUTY CITY ADMINISTRATOR/ PUBLIC SERVICES AND INFRASTRUCTURE DATE: MARCH 15, 2022
SUBJECT: MEMORANDUM OF UNDERSTANDING WITH THE PLACENTIA COMMUNITY
FOUNDATION FOR THE KRAEMER MEMORIAL PARK FOUNTAIN AND PLAZA
LEGACY BRICK PROGRAM
FISCAL
IMPACT: There is no immediate fiscal impact associated with the recommended actions.
SUMMARY:
The City Council allocated funds in the Fiscal Year ("FY") 2021-22 Capital Improvement Program ("CIP") Budget to completely renovate the Kraemer Memorial Park Fountain and surrounding plaza area. A study session presentation outlining the conceptual plans prepared for the fountain and plaza renovations along with a proposal for consideration of a Legacy Brick Program to incorporate into the project was presented to the City Council for its consideration and policy direction on October 5, 2021. At that time, the City Council approved the conceptual plans and directed Staff to proceed with the project as well as to return later with an agreement with the Placentia Community Foundation ("Foundation") to consider incorporating a Legacy Brick Program into this project. The proposed Memorandum of Understanding (MOU) with the Foundation outlines the proposed partnership between the City and the Foundation to sell commemorative legacy bricks to the community to be incorporated into the fountain plaza as a fundraiser as well as to further include the community's participation in this legacy project.
RECOMMENDATION:
It is recommended that the City Council take the following actions:
Approve the draft Memorandum of Understanding between the City and the Placentia Community Foundation for a commemorative legacy brick program; and
2. Authorize the City Administrator to execute the Memorandum of Understanding in a form approved by the City Attorney.
DISCUSSION:
The City Council allocated a total of $607,500 in the FY 2021-22 CIP Budget to fund the cost of renovating the Kraemer Memorial Park fountain and surrounding plaza space. A Study Session
1. j.
Mar. 15, 2022
City Council Agenda
March 15, 2022
presentation outlining the conceptual plans prepared for the fountain and plaza renovations along with a proposal for consideration of a Legacy Brick Program to incorporate into the project was presented to the City Council for its consideration and policy direction on October 5, 2021. At that time, the City Council approved the conceptual plans and directed Staff to proceed with the project and to return later with a separate agreement with the Foundation for its consideration.
The Foundation is a registered 501(3)(c) non-profit dedicated to providing grant funds to local Placentia -based non -profits and service organizations. Staff has been working with the Foundation on developing a partnership to sell personalized commemorative bricks to the community for incorporation into this legacy project. The purpose of the proposed program is to help the Foundation raise additional funds to invest further in local organizations benefitting the Placentia community, to help the City offset some construction costs, and to provide an opportunity for the larger community to participate in this legacy project.
In December 2021, Staff released an online survey asking the community to provide input regarding the proposed Legacy Brick Program as part of the fountain renovation project. The survey was designed to gauge the community's interest in participating in such a program, to determine how much the community would be willing to spend upon commemorative bricks, and to provide additional input as to how the program should be structured and who could participate.
The survey results are attached for reference.
The proposed MOU between the City and Foundation outlines the roles and responsibilities of both parties and how the revenues generated from brick sales would be shared. The Foundation will be responsible for administering the brick sales program and will contract and coordinate directly with the brick manufacturer and engraver. The Foundation is also responsible for collecting the revenues generated by the brick sales. The City's responsibility will be to oversee the design and construction of the fountain and plaza as well as the installation of the bricks within the plaza space. The City is also responsible for the marketing and communications aspect of the brick sales and will maintain the bricks along with all the fountain and plaza improvements in perpetuity.
The proposed brick sales price is $130 for each brick with senior citizens allowed to purchase bricks at a discounted rate of $95 each. The proposed net revenue split between the City and Foundation is 60/40 in favor of the Foundation. The Foundation has committed in the MOU to return 40% of the net revenues it receives from brick sales back to the Community Services Department to help fund various programs and special events in the City throughout the year. The specific programs the Foundation would like to support are outlined in Exhibit A of the MOU. The Foundation will further reinvest an additional 15% of the net revenues it receives in new grant programs for Placentia -based non -profits and service groups and will be allowed to keep 5% of net revenues to cover administrative and tax filing costs. The City will commit all its revenue share towards offsetting project construction costs. In addition, $5 from each brick sold will be placed into a capital maintenance account to fund future repairs and maintenance for the fountain plaza.
City Council Agenda
March 15, 2022
Prepared h]¢';
Luis Estevez
Deputy City Administrator
Attachments:
1. Survey Results
2. Memorandum of Understanding
Reviewed and approved:
I n . Arrula
City Administrator