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HomeMy WebLinkAboutMINUTES - 04031984 - 2.3 TO: BOARD OF SUPERVISORS FROM: C. E. Dixon, Interim County Administrator Contra ta COS DATE: March 28, 1984 @ County SUBJECT: Use of Interest Proceeds from Stress Center Sale SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION RECOMMENDATION: It is recommended that the Board of Supervisors deny the request of the Family Stress Center Board of Directors to utilize interest earned on the sale of the Galindo property to offset the Center's operating deficits, and reaffirm the Board's policy that these funds are to be used to obtain a permanent facility for the use of the Family Stress Center. BACKGROUND: Following the sale of a County-owned building (Galindo property) used by the Family Stress Center, the Board of Supervisors on May 17, 1983 approved the creation of a trust fund with the $270,000 in proceeds to be used to provide a permanent location for the Center. This may be co-located space for several County-funded private non- profit community agencies. The Board alsoauthorized interest earned by investment of the funds to be used to provide the Center with interim leased office space. Because the Concord Redevelopment Agency agreed to pay the Center' s rent at its new location through August, 1984, the interest has remained untouched. This amounted to $11 ,778. 71 as of February 26, 1984. The Board of Directors of the Family Stress Center requested by letter of January 16, 1984 that the Board of Supervisors permit the Center to withdraw from the trust fund monies amounting to the total accumulated interest earned during the period of January through May, 1984. On January 24, 1984, the Board referred the letter to the County Welfare Director and the County Administrator for a report. DISCUSSION: The Center provides services to aid the functioning of families within the County. The Social Services Department currently administers two County contracts with the Center, a respite nursery care agreement for $22,937 of AB 1733 funds, and a counseling and parent aid service contract for $40,900 of County funds. That Department feels the Center provides needed services which might not otherwise be available. The Center has advised us of current operating deficits amounting to $3,500 to $4,000 each month and requests the use of the interest from the sale proceeds to offset those losses. They would not anticipate a need for any of the principal in the six months from the date of this letter. Efforts to raise sufficient operating funds continue to be made by the Center. It is hoped that use of the interest funds would be limited inasmuch as applications from several funding sources are pending. CONTINUED ON ATTACHMENT: X YES SIGNATURE: &�U /Je � .�_ RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE _APPROVE OTHER SIGNATURE(S) ACTION OF BOARD ON April 3, 1984 APPROVED AS RECOMMENDED OTHER XX Bill Groth, Director of the Family Stress Center, and Virginia Hooper, member of the Board of Directors , appeared and urged the Board to approve the Center's request. The Board referred this matter to the Finance Committee (Supervisors Schroder and McPeak) for consideration at its meeting on April 9 , 1984 . VOTE OF SUPERVISORS X_ UNANIMOUS (ABSENT I ) I HEREBY CERTIFY THAT THIS IS A TRUE AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. a County Administrator 000 ,410 0 1 0 CC: County Welfare Director ATTESTED April 3, 1984 County Auditor-Controller J.R. OLSSON, COUNTY CLERK President, Bd./Directors, Family AND EX OFFICIO CLERK OF THE BOARD Stress Center , Finance Committee Mae2/7-Ba BY a"-AR-t� �' ��`�-�'�"-� DEPUTY 6fTannna ) Ma al i n -2- While not requested by the, Center,,the,.possi,bility, of.. loaning funds to.,the, Center was considered and rejected es 'being prohibited by the California Constitution, Article XVI, Section 6. The Board may contract with the Center pursuant to Government Code Section 26227 to provide programs deemed necessary to meet certain social needs of the population. Such a contract could be used as a funding mechanism by the County for the provision of certain specified services by the Center. The Family Stress Center is not unique in its funding crisis. The Board, in establishing a Family and Children's Services Trust Fund, recognized the hardships falling on private, nonprofit community agencies. While recognizing that each request for funding should be weighed on its own merits, should the Board provide funding to offset operating losses by any organization, it can reasonably be expected to consider funding operating losses of any organization finding themselves in a similar situation. The request of the Family Stress Center to use even the interest from the investment of the proceeds from the sale of the 1600 Galindo Street property for ongoing operating losses is contrary to the expressed policy of the Board regarding the use of these funds. Other agencies do not have such funds available and using the interest in this manner seems to treat one agency differently than all other similar agencies. 00041-.