TITLE
Recommendation to authorize City Manager, or designee, to execute an amendment to the Memorandum of Understanding with the Long Beach Community Foundation to allow for administrative fees ranging between 1.25 percent and 5 percent for the distribution of Long Beach Disaster Relief Funds. (Citywide)
DISCUSSION
On January 16, 2018, City Council authorized the City Manager to enter into a Memorandum of Understanding (MOU) with the Long Beach Community Foundation (LBCF) to administer and distribute funds donated to the Long Beach Disaster Relief Fund (LBDRF). At that time, the administrative fee for services was set at 1.25 percent.
The LBCF has administered charitable funds and fostered philanthropy to benefit the City of Long Beach (City), non-profit organizations, and educational institutions for over 27 years. Their 200 charitable funds, totaling $65 million, have created and sustained critical services offered by hundreds of Long Beach organizations, including the Long Beach Library Foundation, YMCA of Greater Long Beach, Long Beach Day Nursery, Long Beach City College, and California State University Long Beach.
During the COVID-19 pandemic, the LBCF was charged with collecting donations, vetting non-profits and ensuring funds were used in the manner prescribed. Disaster relief funds totaled $1.4 million and were distributed to 171 non-profit organizations. The breadth of these efforts was not contemplated when the MOU was established. The administrative fee of 1.25 percent was not sufficient to cover the required staffing and resources expended during the pandemic.
At this time, the LBCF is requesting an amendment to the current MOU to provide for an administrative fee commiserate with the staff effort required, based on varying levels of work determined by the nature of the disaster. LBCF is not requesting a retroactive payment of administrative fees.
The LBCF is proposing an amendment to the existing MOU to include a tiered fee range between 1.2...
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