CONSENT CALENDAR
City of San Bernardino
Request for Council Action
Date: April 3, 2024
To: Honorable Mayor and City Council Members
From: Charles A. Montoya, City Manager
Department: City Manager's Office
Subject: Establish a California Nonprofit Public Benefit Corporation named The City of San Bernardino
Foundation for Community & Economic Growth (All
Wards)
Recommendation:
It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2024-060 authorizing the City Manager or designee to take the necessary steps to establish a California nonprofit public benefit corporation named The City of San Bernardino Foundation for Community & Economic Growth to support the opening and operation of a business and visitor center in the city.
Executive Summary
To advance the city’s economic development by attracting new businesses and supporting existing ones, staff seek to establish a California nonprofit public benefit corporation. This corporation, named the City of San Bernardino Foundation for Community & Economic Growth, will act as the fundraising entity to support a new initiative: the establishment of a business and visitor center. This center aims to become a comprehensive information hub for both current and potential businesses, as well as visitors. The projected initial cost for launching this nonprofit foundation is $2,000, with an expected annual operating expense of $2,000 thereafter.
Background
Attracting and retaining businesses is crucial for the prosperity and sustainability of a city for several reasons. Businesses contribute to the economic growth of a city by creating jobs and generating income. They contribute to the overall tax base, which supports public services and infrastructure development. A city with a diverse range of businesses and varied industries is more resilient against economic downturns and is better equipped to weather economic fluctuations as it is less dependent on a single sector. A thriving business community also supports amenities and services that improve the overall quality of life for residents. It contributes to social stability by providing secure employment opportunities, fostering community engagement, and supporting public initiatives that improve the overall well-being of the city’s residents.
Visitors also play an important role in contributing to the economic vitality, cultural richness, and overall prosperity of a city. Guests generate revenue for local businesses, including restaurants, shops, and entertainment which results in a positive economic impact. Visitors help generate additional tax revenue that is reinvested into the community, resulting in improved quality of life for residents.
Recognizing the importance of cultivating a strong business community and understanding the critical role the City of San Bernardino plays in supporting new and existing establishments, staff discussed various methods in which to further support existing establishments while simultaneously attracting new businesses and visitors to the city. These discussions lead to the development of an innovative concept: the establishment of a business and visitor center (“Center”) in the city that serves as a one-stop information hub for businesses and visitors focused on promoting economic growth through business attraction, retention, expansion, and promotion offering numerous benefits to the city. Long-term outcomes anticipated with the establishment of the Center include:
•Economic Growth
•Job Creation
•Increased Tax Revenue
•Community Revitalization
•Regional Competitiveness
•Enhanced Quality of Life
To help fund this endeavor while minimizing the impact to the City’s General Fund, staff propose establishing The San Bernardino Foundation for Community & Economic Growth, a California nonprofit public benefit corporation that will actively raise funds for the services, activities, and related efforts that will result in long-term economic benefits to the community.
Discussion
Establishing a nonprofit public benefit corporation, such as The San Bernardino Foundation for Community & Economic Growth, as the fundraising arm provides a multitude of significant advantages:
•Philanthropic Contributions Management. The creation of a nonprofit entity allows the City to effectively manage and utilize philanthropic contributions that are specifically designated for the Center's activities and initiatives. By channeling donations through the foundation, the City can ensure that these funds are allocated efficiently and transparently to support the Center's mission and objectives.
•Grant Eligibility and Partnerships. The nonprofit status significantly enhances the foundation's eligibility for various grants and funding opportunities, expanding the financial resources available to support the Center's programs and services. It can help facilitate the establishment of strategic partnerships with other organizations, businesses, and philanthropic entities interested in supporting the Center's initiatives, thereby amplifying its impact and reach. •Board Composition and Governance. The proposed composition of the foundation's board, comprising of the City’s elected officials, local business owners, and community members, ensures a diverse range of perspectives, expertise, and stakeholder representation in guiding the foundation's activities and decision-making processes. This inclusive governance structure not only enhances community engagement and ownership but also fosters collaborative decision-making aligned with the Center's goals and values. •Fiscal Accountability and Transparency. By affiliating the nonprofit foundation with the City, its financial records and transactions become subject to the rigorous standards of California's Public Records Act. This legal framework ensures that the foundation operates with utmost transparency and accountability, as its financial activities are open to public scrutiny upon request.
Such transparency not only builds trust and confidence among donors and stakeholders but also promotes responsible stewardship of resources for the public benefit.
•Alignment with City Priorities. Through the appointment of current and future elected officials to the foundation's board, the City can ensure that the nonprofit's activities and initiatives closely align with its overarching priorities and strategic objectives. This alignment facilitates collaboration between the City and the foundation, enabling them to work together effectively towards common goals and shared outcomes for community development and well- being.
•Ex-Officio Board Members. The inclusion of the Economic Development Director and Finance and Management Services Director as ex-officio board members provides direct oversight and expertise in matters related to financial management, governance, and alignment with the City's strategic direction.
Their involvement ensures that the foundation operates in accordance with best practices, sound fiscal principles, and the City's overarching goals, thereby safeguarding the integrity and effectiveness of its operations.
Establishing the proposed nonprofit public benefit corporation will serve as a strategic mechanism mobilizing resources, promoting community engagement, and advancing the mission of the City in a transparent, accountable, and collaborative manner. By leveraging the advantages of a nonprofit status and aligning closely with the City's priorities, the foundation can effectively support the future business and visitor center's efforts to enhance the quality of life and economic prosperity for all residents in the city.
If approved by the City Council, staff will return at a future meeting with the details regarding the Center’s operational structure, anticipated costs, and proposed services to be offered.
2021-2025 Strategic Targets and Goals
This item aligns with Strategic Goal #1(a): Improved Operational & Financial Capacity - Continue to seek opportunities to secure long-term revenue sources. Establishing a California nonprofit public benefit corporation will provide the City with a mechanism to establish a long-term revenue source to financially support additional services for the betterment of the community
Fiscal Impact
Approval of this item will result in the use of General Funds estimated at $2,000 the first year to establish the nonprofit foundation and $2,000 annually for ongoing costs.
Overall savings throughout the operating budget will cover this amount and the biennial budget will be updated upon approval.
Conclusion
It is recommended that the Mayor and City Council of San Bernardino, California, adopt Resolution No. 2024-060 authorizing the City Manager or designee to take the necessary steps to establish a California nonprofit public benefit corporation named The City of San Bernardino Foundation for Community & Economic Growth to support the opening and operation of a business and visitor center in the city.
Attachments
Attachment 1: Resolution No. 2024-060. The City of San Bernardino Foundation for Community & Economic Growth
Attachment 2: Articles of Incorporation. The City of San Bernardino Foundation for Community & Economic Growth
Attachment 3: Bylaws. The City of San Bernardino Foundation for Community & Economic Growth
Ward:
All Wards
Synopsis of Previous Council Actions:
N/A