HomeMy WebLinkAboutCommittee of the Whole Minutes 10.15.2002 MINUTES
CITY COUNCIL COMMITTEE OF THE WHOLE
OCTOBER 15, 2002 6:30 P.M.
COUNCIL CHAMBERS
MEMBERS PRESENT:
Chairman Bud Johnson
Lauren Van Roekel
Ken Olson
Gay Easton
Dan Mears
Doug Poehls
Mark Mace
Daniel Dart
John Oakes
OTHERS PRESENT:
Matt Erekson
Mary Embleton
Peg Amold
Mayor Johnson introduced Peggy Arnold to present information regarding library foundations.
Peggy recently attended a workshop on library foundations, and she distributed information to the
council.
Peggy explained that a foundation is not the governing board of the library. The foundation board
manages the foundation, not the library. A foundation is not a separate organization that goes into
business for itself, and it does not compete with the library to provide services. A foundation is not a
replacement for the library budget, but it is there to augment, enhance, and enrich the library's budget.
A foundation is a non-profit legal corporation, usually established with a 501(c)(3) organization through
the IRS. It is a non-governmental organization that has a separate legal structure from the library and has
its own principal fund or endowment that serves the public good. A foundation's activities can be
educational and cultural. Anyone can use the name foundation for the name of an organization, but that
does not definitely mean that the group is designated as a private foundation.
The library director needs to be involved and have the time to be involved in a foundation. A foundation
is usually started by recruiting board members. The characteristics necessary for board members include:
individuals with time available to give; individuals with leademhip abilities; members who know how to
manage money; and individuals who are passionate about libraries. Some foundations are organized to
require board members to make monetary commitments to the foundation. Foundations set up by-laws,
which explain the detailed, day-to-day activities in which the foundation is involved. Some use articles of
incorporation, which include all that is required and no more because it is not easy to change articles of
incorporation. Articles of incorporation can include the foundation's vision, and they should also contain
a dissolution clause in order to provide a way to end the foundation and disperse the money. A
foundation starts by applying for tax-exempt status using IRS Form 1023 and gets an Employer ID. An
attorney or a CPA is usually needed to do this.
There are four types of foundations. Independent foundations are grant-making organizations that use
donations from an individual, family, or group of individuals, and the donors usually run the foundation.
The Ford Foundation and the Carnegie Foundation are examples of independent foundations. There are
about 27,000 independent foundations in the United States. Corporate-sponsored foundations are created
and funded by a business corporation, but they are separate from the business. However, they are usually
managed by the board of directors, which is composed of the corporate officers of the corporation. The
Chrysler Foundation and the Dennis and Phyllis Washington Foundation are examples of corporate
sponsored foundations. There are about 1,700 corporate foundations at the present time. The community
City Council Committee of the Whole minutes of October 15, 2002
foundation is usually specific to the community or region. They are not technically private because they
draw support from so many different sources, but they are called private foundations. Community
foundations raise money themselves. The Montana Community Foundation is one of about 327
community foundations. Operating foundations operate social research and social welfare programs.
Most of these foundations spend money on programs such as hospitals and universities.
A library foundation attracts donations to enhance library services by capturing community assets. A
library foundation can hold fundraising programs and host annual events. A library foundation can
improve access to free resources already available by hosting training programs for patrons on use of the
resources in the library, by providing resources in other formats such as CDs and videos, by purchasing
duplicates of reference items to circulate, and by improving access by licensing products that would be
available over the Internet for library patrons. The foundation can be used to expand the use of
technology to provide educational and cultural opportunities. The foundation could fund and maintain
computer labs, pay database fees, and sponsor speakers and programs. The foundation can be set up to
become a partner with the library to meet the foundation's requirements. Most private foundations must
give away five percent of their assets, so a partnership with a non-profit organization such as a library,
helps them fulfill this requirement.
A library foundation can also define and promote the library's role in sustaining the community. It can
reinforce the library as an information center for the community and provide arts and cultural offerings.
The foundation connects people with common interests, and it makes use of what is available in the
community. The foundation can be used to serve as a platform for collaborative projects. Thirty of
Montana's seventy-nine libraries have library foundations. Most of them use their foundation to enhance
their materials by purchasing books and CDs. The Missonla Public Library has a more elaborate plan
where they look at their yearly assets and identify areas where the funds could be used, such as staff
development. Them is a Laurel Library trust. It is not a foundation, but it is a 501(c)(3) organization, and
its purpose has been to promote the library and library services, and to provide college scholarships in
library science. So far, the library trust has sponsored some programs and purchased some equipment.
The trust has less than $2,000 in assets. Peg mentioned that there might be some advantage in changing
this trust to a foundation, mainly because the trust does not have as many ways to manage the money.
The trust has not been able to be as active as far as raising money and going to other foundations for
funds.
Peg learned what a library foundation could do in the community besides provide funds for the library. It
can make the library more of a community center. The Laurel Library Board has discussed foundations at
their meetings. They would probably start a Friends of the Library group and have the group help identify
people who could serve on the foundation and to define what the foundation wants to be.
Mayor Johnson thanked Peggy for her presentation. Mayor Johnson mentioned that the library would
begin opening at 9:00 a.m. beginning October 17th in order to better serve the community.
The council discussion was held at this time.
Lauren commented on the recent news regarding mental health cuts and the deficit from Helena. He has
had opportunities to visit with legislators and encouraged the council to take advantage of similar
oppommities.
Ken mentioned that a resolution regarding the HOME Grant needed to be placed on the agenda. Mayor
Johnson stated that Casey Joyce~presented the information regarding the HOME Grant application at the
council workshop on October 8 . However, the item was not placed on the agenda and needed to be
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City Council Committee of the Whole minutes of October 15, 2002
placed under unscheduled matters. A motion, a second, and a unanimous vote would be necessary to
place the resolution on the agenda. A motion and a second would then be needed for approval of the
resolution.
Ken stated that, now more than ever, it is important that the council stay in touch and in tune with our
legislators since there will be a lot of things coming through the legislative session that will directly affect
municipalities. At the League meeting, Alec Hansen encouraged individuals to contact representatives
and senators. The League of Cities and Towns will be in contact with cries to give important
information.
Gay Easton thanked the city for the opportunity to attend the meeting in Butte. Gay talked to the lady that
handles the homebuyer program and they were meeting today regarding Laurel's application. Gay stated
that it is justified that the council take action on it tonight.
Mayor Johnson expressed thanks for being able to attend the sessions in Butte. He was able to engage in
a number of conversations that were facilitated by being at that meeting. He stated that some serious
matters would be considered during the legislative session. Some of the effects of legislative decisions
will be heard during the Department of Revenue's report this evening.
Dan Dart mentioned that important issues will come up before the legislature and he encouraged the
council to stay vigilant to the issues and to stay in contact with and state our position openly and candidly
to our representatives. Dan has had conversations with the local legislators, and they have our best
interest in mind and he asked them to pay attention to Laurel's needs. He suggested that the council
should continue to contact the legislators.
Mark Mace thanked the city for allowing him to attend the League of Cities and Towns meeting in Butte.
It helps him realize that the other cities and towns are in line with what we are doing. The problems are
the same, and it is good to hear how other cries approach the problems. Mark felt that it was a good
session, even though the senators were not there. The key issue is going to be how we will fare with the
next legislative session. Other alternatives need to be considered.
Doug Poehls mentioned that the YMCA Board is doing some long-range planning. A long-range
planning meeting is scheduled for November 15th at 5:00 p.m. at South School. The YMCA is interested
in attending a joint meeting with the city and the school board.
Mayor Johnson announced that Laurel is hosting the joint city-county meeting at DJ's on Thursday,
October 24th, at 5:30 p.m. He asked the council to tell Cindy tonight if they planned to attend the
meeting.
The meeting adjourned at 6:56 p.m.
Respectfully submitted,
Cindy Allen
Council Secretary
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