April 5, 2005

SUBJECT: Recommendations Regarding a Process for the Award of Swirsky Youth Opportunity Fund Grants to Agencies Supporting Disadvantaged Youth (RTC 05-096)

REPORT IN BRIEF

In November 2003, City Council directed the Parks and Recreation Commission and Arts Commission to develop in joint session a recommended process for granting two-thirds of the interest generated by the corpus of the Dorolou Swirsky Youth Opportunity Fund each year ($10,000-$12,000 estimated for FY 2004/2005) to outside groups serving the recreational, cultural, social and/or educational needs of disadvantaged youth living in Sunnyvale. This report describes the options available to Council including the process the Commissions are recommending which includes the promotion of available grants, the grant application process, the review of grant applications and the award of the grant funds to local agencies or organizations serving disadvantaged youth.

Staff recommends Alternative No. 1: Use proceeds from the Swirsky Youth Opportunity Fund to supplement the City's Mobile Recreation program or an equivalent City program rather than using the funds for grants to outside groups. The City Manager would include a recommendation for the use of funds (consistent with the Trust) with the budget submittal each year.

The Arts Commission reviewed this report on February 16, 2005, and recommended that Council accept Alternative No. 1. In addition, it was recommended that Council return this item to the Arts Commission after the first year to be considered for a grant program to agencies serving disadvantaged youth. (Motion passed 4-0 with Commissioner Draganowski Davis abstaining.)

The Parks and Recreation Commission reviewed this report on March 9, 2005 and recommended that Council accept Alternative 1. In addition, it was recommended that publications advertising programs receiving these funds include a statement that the monies came from the Swirsky Youth Opportunity Fund. (Motion passed 4-1 with Commissioner Pole dissenting.)

BACKGROUND

In August of 1993, City Council accepted Dorolou Swirsky's gift of an ongoing Youth Opportunity Fund in the form of a Trust Estate. According to the Trust, Ms. Swirsky’s donation was given to the City to “provide resources primarily to help develop and support City of Sunnyvale programs, and cooperative programs involving the City and community organizations, schools, and other institutions aimed at providing positive sports, recreational, social, cultural and educational activities for disadvantaged youth living in Sunnyvale.” In addition, the monies could be used “to provide direct grants to organizations serving disadvantaged youth living in Sunnyvale for such purposes as operations, staff development and training and facilities development.”

The estate was donated to the City upon her death in March of 2000, and the property was rented until a future time when the market improved and the City would fare better to sell the property. During that time, the City established the Swirsky Youth Opportunity Fund to account for the proceeds.

In June 2003, Council gave their approval to put the house on the market and asked for staff's recommendation on how to use the net proceeds from the sale.

On November 11, 2003, City Council authorized the City Manager to sign the documents to sell the house for $625,000. After payments related to the sale and monies owed on the property, approximately $597,000 was realized from the sale and deposited into the Swirsky Youth Opportunity Fund. At that time, staff recommended and Council directed that two-thirds of the annual interest from that fund be used to provide direct grants to outside organizations serving Sunnyvale disadvantaged youth, to be administered through the joint Arts Commission and Parks and Recreation Commission. Council then directed the Arts and Parks and Recreation Commissions to develop a recommended process to that effect for Council's consideration. (The remaining one-third interest will be used to provide summer recreational equipment and supplies to disadvantaged youth through an agreement with Sunnyvale Community Services.)

Since then, the Parks and Recreation Commission and Arts Commissions have held several joint meetings to discuss and develop the proposed grant program policies and guidelines. This report details the Commissions' work and presents the Commissions' recommendations for Council's consideration.

EXISTING POLICY

From Recreation Sub-Element:

Policy A.2. Encourage active citizen involvement in development and provision of Parks and Recreation programs, facilities, and services.

Policy B.2. Develop effective partnerships to address the complex needs of youth.

Policy D.2. Implement program offerings to meet the needs of identified sub-groups within the population.

D.2.a. Continue the provision and development of programs for individuals with disabilities.

Policy D.3. Provide recreation programs which meet the complex needs of youth.

D.3.a. Develop and implement programs for preschool children which address developmental needs for care and supervision, socialization, and activity.

D.3.c. Develop and implement programs for school age and high school youth, which address developmental needs for structure, role models, positive values, skill building, community involvement, and socialization.

D.3.d. Research and implement effective means of reaching and involving youth and teens in recreational and related activities.

Policy E.2. Provide recreation facilities that will accommodate and meet the needs and interests of special population groups.

From the Arts Sub-Element:

Goal C: Positively impact the development of youth by providing a strong foundation in the arts which can serve as intervention and prevention through opportunities for high quality involvement – both passive and active – in arts programs and services within given resources.

Policy C.1. Develop and implement within given resources art programs and services that positively impact youth development through reduction of unsupervised time so as to minimize and deter future high risk behavior.

From the Socio-Economic Sub-Element:

Policy 5.1H.8. Encourage programs that assist at­risk youth in obtaining an education and learning job skills.

Policy 5.1H.9. Encourage programs and services that address the special needs of the disabled population and assure that disabled individuals have access to services.

DISCUSSION

The following discussion describes the Commissions’ intent related to the grant application process and describes several options that could be considered by Council on how the Swirsky Youth Opportunity grant funds could be awarded. The discussion also provides other options that could be considered by Council. The Commissions met in joint session seven times for a total of ten hours over a nine-month period on this matter. Their starting point was to take direction consistent with Trust Fund language and intent.

The Dorolou Swirsky Youth Opportunity Trust Fund specifically states that funds from the Trust should be used to “help develop and support City of Sunnyvale programs, and cooperative programs involving the City and community organizations, schools, and other institutions aimed at providing positive sports, recreational, social, cultural and educational activities for disadvantaged youth living in Sunnyvale.” However, it also allows for "use of the Fund to provide direct grants to organizations serving disadvantaged youth living in Sunnyvale for such purposes as operations, staff development and training, and facilities development." The information shown below in italics is taken from the grant application form (Attachment A) that is proposed by the Commissions and one can readily ascertain that it refers directly to the guidelines provided in the Trust.

Qualifications of Applicants

Applicants must be from a Recreational, Social, Cultural or an Educational Organization that serves disadvantaged youth, ages 18 or younger or are enrolled in high school, and who live in Sunnyvale.

The Commissions recommend that no matter what process is used, the grants should not be awarded to specific individuals, but rather to agencies and non-profit organizations serving disadvantaged youth living in Sunnyvale. The proposed application for a grant requires the applicant to “Describe your organization's mission,” and to “Briefly describe your organization's background and/or history including the program and types of youth served.” In addition, the applicant is also asked to “describe how the organization intends to use the grant to serve disadvantaged youth.” More detail is asked from the applicant that is related to the specifics of the program the grant would be used for including the time, duration, location, and number of youth anticipated to be served.

It is this information that the Commissions propose be used to determine the most qualified applicants and to assure that the grant funds will be used to meet the intended purpose of the Trust. Since there are a wide variety of ways to define “disadvantaged” youth – physically or mentally disabled, from low income households, and so on, the Commissions determined it best to not be too specific in the grant application. Their concern was to avoid eliminating potential grant award applicants by defining ‘disadvantaged’ for them and instead it is left to the applicant to describe how their services will benefit “disadvantaged” youth.

In accordance with the Swirsky Youth Opportunity Trust, qualifying youth to be served must be residents of Sunnyvale. The Commissions propose that those qualifications be further defined as those who live in Sunnyvale and who are either “ages 18 or younger or enrolled high school students.”

Use of Grant Funds

Proceeds of the funds may be used to cover operational costs, staff development, training, equipment, and facilities development.

The Trust document also dictates that proceeds of the funds may be used to cover operational costs, staff development and training, and facilities development. This is noted in the application as shown above; however, the Commissioners suggest that proceeds could also be used for “equipment” and the definition of the type of equipment – whether operational equipment, training equipment or facility related equipment – would be left to the applicant to describe.

The Commissions also advise that the agency or organization receiving the grant show how it would be accountable for the use of the funds. Two questions in the grant application are designed to address this: Describe how the Swirsky Youth Opportunity Trust Fund Grant monies would be utilized and how you would appropriate and account for this funding for disadvantaged youth; and Describe how your organization would measure the success of the program in which the grant monies would be used. Answers to these questions will also provide more information on how success of agency's use of the grant monies will be measured.

Program Promotion

The promotion of the Swirsky grant program would be an operational function under the jurisdiction of the Parks and Recreation Department via the City's web pages and the Quarterly Report, as well as public announcements from the City's Communications Office. The Commissions suggest that while this new program will need some initial promotion, eventually the word will be out in the Sunnyvale community and promotion may become a lesser concern. The Commissions were clear that they would not recommend encouraging applications from individuals and organizations that would not qualify, nor would they recommend soliciting an overwhelming number of applications – especially from agencies that do not serve Sunnyvale youth. The promotion of the grant program should also discourage applications seeking significant awards that would exceed the amount of funds provided by the Swirsky Youth Opportunity Trust Fund.

Application Review and Selection Process - Council Policy

The application review and selection process is the primary area where a Council policy decision needs to be made and there are several options available. One option would have the Parks and Recreation and Arts Commissions separately make their recommendation for the grant award recipients and the amount of the grant to be awarded to City Council for approval. This option follows the traditional role of the Commissions as advisory to City Council, and Council would make the final decision on the recipients of the grant, and the amount of the grant awards. While one could readily see the benefit to City Council having the final authority to determine who would receive a grant and how much, the drawbacks are that the Council would need to review the details of each of the grant applications, just as staff and the Commissions would. This process would be similar to the current process for Outside Group Funding where the Housing and Human Services Commission reviews the grant applications and advises Council along with staff's recommendation, and the City Council makes the final determination.

A second option would give the Parks and Recreation and the Arts Commissions the authority to make the final decisions on the selection of the grant award recipients and the amount of the award. By having the Commissions directly award the grants, this process would be similar to the former co-sponsorship process whereby each applicant for co-sponsorship status appeared before the Parks and Recreation Commission or the Arts Commission and the Commissions had full authority to approve or not approve the organization's co-sponsorship status as well as pre-approved amounts of funding for operational costs such as printing and promotion. City Council did not review the applications, nor did the Council provide a level of final approval except if an organization were to appeal a Commission's decision to the Council.

A third option would have the Arts Commission and the Parks and Recreation Commission each select two of their members to serve on a five member “Swirsky Grant Application Review Committee.” The fifth member of the committee would be a representative of the Housing and Human Services Commission or an appointee of the City Council or the City Manager. The fifth member of the committee would be required to provide an odd number of members to avoid a tie vote.

If the third option as shown above is selected, the City Council could decide to allow the Swirsky Grant Review Committee to have the final say in the selection of grant recipients, or the Committee could make its recommendation directly to City Council and the Council would then make the final decision.

A fourth option does not consider a new grant program for outside groups at this time. Instead, the proceeds of the Swirsky Youth Opportunity Fund would provide additional revenue to be used for recreational, arts and sports equipment, material and supplies to support City administered recreation programs that meet the criteria of the Trust Fund. For example, the City's Mobile Recreation Program, which currently has a waiting list of children who would like to participate, could benefit from funds from the Trust in order to increase its services toward meeting that demand. Proceeds from the Trust would be used to meet the primary intent of the trust – to help develop and support City of Sunnyvale programs – that will directly benefit the City’s disadvantaged youth. Under this option, the City Manager would include a recommendation for use of the funds with the annual budget submittal each year.

Timeline

Upon approval of a process by City Council, a new grant program could begin in the early summer of 2005. The timeline would allow from March to May to promote the program and have application forms available to interested agencies and organizations. The deadline for applications is proposed to be a date in late April or early May and applications must be received or postmarked by 5:00 p.m. on a specific date. Depending upon the options that Council ultimately approves, the timeline to review the grant applications, select the recipients and award the funds may vary from one to three months in order to schedule appropriate Commission and Council meetings. Ideally, the grant award period would cover the fiscal year, from July 1 - June 30.

FISCAL IMPACT

The Dorolou Swirsky Youth Opportunity Trust Fund is already established; therefore, there is no fiscal impact to the City. Current year interest from the Dorolou P. Swirsky Trust Fund will be returned to the endowment base since the new grant award program, if approved by City Council, will initially award the grants beginning in FY 2005/2006. Should no grants or grants that total less than the available two-thirds interest intended for this program be awarded, the interest will remain in the fund and be returned to the principle the next fiscal year.

Using the Swirsky Youth Opportunity Trust Funds to supplement approved service levels for disadvantaged youth would have a positive impact on those service levels, especially during difficult financial times.

Lastly, it should be noted that there are no restrictions on the Swirsky Youth Opportunity Trust Fund that would prevent additional funds from being added should additional corporations or individuals wish to make a donation for the same purpose as the original trust. The Commissions specifically expressed an interest in whether or not the fund would be able to increase if additional donations were made.

Conclusion

This report presents the joint work of the Arts Commission and the Parks and Recreation Commission. It is the Commissions' recommendation for a new grant program that will give outside groups serving the recreational, cultural, social and/or educational needs of disadvantaged youth living in Sunnyvale small grants from two-thirds of the interest of the Swirsky Youth Opportunity Trust Fund. This recommendation is in response to City Council's request in November of 2003.

PUBLIC CONTACT

Public contact was made through posting of the Arts Commission and Parks and Recreation Commission agendas and Council agenda on the City’s official notice bulletin board, posting of the agenda and report on the City’s web page, and the availability of the report in the City Clerk’s office, Library, Parks and Recreation Administration office, Corporation Yard, Community Center and Senior Center. Notice of Commission and Council meetings regarding this report was also distributed to the “Friends of Parks and Recreation” mailing list (a list of organizations and individuals who have expressed an interest in Parks and Recreation issues).

On March 9, 2005, the Parks and Recreation Commission provided a public hearing of this report during its regularly scheduled meeting.

On February 16, 2005, the Arts Commission provided a public hearing of this report during its regularly scheduled meeting.

ALTERNATIVES

1) Use proceeds from the Swirsky Youth Opportunity Fund to supplement the City's Mobile Recreation program or an equivalent City program rather than using the funds for grants to outside groups. The City Manager would include a recommendation for the use of funds (consistent with the Trust) with the budget submittal each year.

2) Approve the option whereby the Arts Commission and the Parks and Recreation Commission each review the grant applications.

3) Approve the establishment of a “Swirsky Grant Review Committee” to review the grant applications. The Committee would be comprised of two members of both the Arts and the Parks and Recreation Commissions and a fifth member who is:

4) City Council would make the final decision on grant awards subsequent to the Commissions or the “Swirsky Grant Review Committee” recommendation. (With alternative #2 or #3 above.) 

5) The Commissions or the “Swirsky Grant Review Committee” would make the final decision on the grant award. City Council would take action only in cases of appeal. (With alternative #2 or #3 above.)

6) Other alternatives as decided by Council.

RECOMMENDATION

The Arts Commission reviewed this report on February 16, 2005, and recommended that Council accept Alternative No. 1: Use proceeds from the Swirsky Youth Opportunity Fund to supplement the City's Mobile Recreation program or an equivalent City program rather than using the funds for grants to outside groups. The City Manager would include a recommendation for the use of funds (consistent with the Trust) with the budget submittal each year. In addition, it was recommended that Council return this item to the Arts Commission after the first year to be considered for a grant program to agencies serving disadvantaged youth. (Motion passed 4-0 with Commissioner Draganowski Davis abstaining.)

The Parks and Recreation Commission reviewed this report on March 9, 2005 and recommended that Council accept Alternative 1: Use proceeds from the Swirsky Youth Opportunity Fund to supplement the City’s Mobile Recreation Program or an equivalent City program rather than using the funds for grants to outside groups. The City Manager would include a recommendation for the use of funds (consistent with the Trust) with the budget submittal each year. In addition, it was recommended that publications advertising programs receiving these funds include a statement that the monies came from the Swirsky Youth Opportunity Fund. (Motion passed 4-1 with Commissioner Pole dissenting.)

Staff recommends Alternative No. 1: Use proceeds from the Swirsky Youth Opportunity Fund to supplement the City's Mobile Recreation program or an equivalent City program rather than using the funds for grants to outside groups. The City Manager would include a recommendation for the use of funds (consistent with the Trust) with the budget submittal each year.

Staff recommends this alternative for the following reasons:

• The City currently provides quality recreation programs and services to Sunnyvale’s disadvantaged youth that meet the criteria of the Swirsky Youth Opportunity Trust.
• Proceeds from the Trust would be used to meet the primary intent of the trust which is to help develop and support City of Sunnyvale programs that will benefit the City’s disadvantaged youth.
• One of these programs, the City’s Mobile Recreation program, has already exceeded its capacity and has a waiting list of 120 children who would like to participate.
• Additional funds from the Trust would allow the Mobile Recreation program, or an equivalent program, to expand without creating a new program or service.
• This option would help ensure continuation of important recreational services for our community’s youth, even during tough financial times.
• This option would allow Council to consider the disbursement of Trust monies in the context of the overall City budget rather than as a separate action outside of that context.
• This option does not necessitate the promotion and coordination that a new grant award program would require.
• Using the proceeds of the Swirsky Youth Opportunity Trust Fund to support existing programs at this point in time does not preclude the Council from considering a new grant program in the future.

Should a new grant program be considered, staff recommends that it be kept as simple as possible to avoid any unnecessary increase in costs related to its administration and promotion.

Reviewed by:
Curtis Black, Interim Director, Department of Parks and Recreation
Prepared by: Cathy E. Merrill, Assistant to the Director of Parks and Recreation

Reviewed by:
Mary J. Bradley, Director
Department of Finance

Approved by:
Amy Chan
City Manager

Attachments

A. Sample Grant Application for the Swirsky Youth Opportunity Trust Fund (pdf format)